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Corporate Laws Central Ministry of Commerce and Industry Foreign Trade (Development and Regulation) Act, 1992

Amendments in Chapter 5 of the Handbook of Procedures (HBP) 2023, related to Export Promotion Capital Goods Scheme to reduce 'Compliance Burden' and enhance 'Ease of doing Business'

25-Jul-2024 | PUBLIC NOTICE No. 15 /2024-25

DGFT has issued amendments in Chapter 5 of the Handbook of Procedures (HBP) 2023, related to Export Promotion Capital Goods Scheme to reduce 'Compliance Burden' and enhance 'Ease of doing Business'.

By virtue of the amendment, the following provisions of Chapter 5 related to the Export Promotion Capital Goods Scheme of the Handbook of Procedures, 2023 are amended-
1. Para 5.04 (a) regarding certificate of installation of capital goods is substituted, vide amendment, the authorisation holders shall now produce the certificate within 3 years (instead of 6 months) from the date of completion of import, to the concerned RA.
2. Para 5.04 (b) stands deleted.
3. Para 5.13 (c) regarding request for extension of Export Obligation period is substituted, vide amendment, the request for extension of first EO period of first block shall be submitted within 6 months from the date of expiry of first block EO period along with the compensation fee as provided in the amendment notification. Further, the request for extension of block-wise EO period may be considered by RA, if the request is made after 6 months, but within 6 years from the date of issue of authorisation along with the compensation fee as provided in the amendment notification.
4. Para 5.13 (e) - new provision has been inserted regarding applicability of Para 5.13 (d) and Para 5.13 (c), for authorisations issued under FTP (2015-20).
5. Para 5.16 (b) regarding request for extension of export obligation beyond 6 years is substituted, vide amendment, in case of extension of Export Obligation period beyond 6 years may be considered by RA along with the composition fee as provided in the amendment notification.
6. Para 5.16 (e) - new provision has been inserted specifying composition fee regarding implementation of all PRC decisions involving levy of composition fee while allowing extension in all block-wise/EO period and/or regularisation of exports already made.

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