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DGFT Amnesty Scheme – Procedure, Important Details, and Deadlines

The DGFT policy circular no 1/2023 was introduced on 17 April 2023 which provided the details regarding what is the procedure to apply for the Amnesty Scheme introduced by the Directorate General of Foreign Trade (DGFT).

The Indian government along with DGFT introduced the new Foreign Trade Policy on 31st March 2023 and it came into action on 1st April 2023. The new trade policy has been implemented with a lot of new changes for the import-export Industry of the country.

With the release of the new FTP 2023, a single-time settlement amnesty scheme has also been introduced. It has been introduced with the major motive of providing a one-time facility for the registration of Export Obligation defaulters of the Advance Authorization and EPCG authorization.

The DGFT Amnesty Scheme aims to give relief to Indian exporters who are unable to accomplish their Export Obligation (EO) within a specific given time. It is an initiative taken by the government to help exporters in closing their previously pending authorizations while initiating new ones.

How to apply for the DGFT Amnesty Scheme?

In order to apply for the one-time Amnesty Scheme introduced in the new FTP 2023, exporters need to follow some basic steps. The steps are:

The procedure for AA/EPCG closure is completely an online process. First of all, you will need to log into the official website of DGFT. As you enter the official website, navigate to the services of >Advance Authorization/DFIA → Closure of Advance Authorization.

In case of an EPCG License, as an exporter, you will have to navigate to services → EPCG → Closure of EPCG.

To apply for this Amnesty scheme, you will require clicking on the check box for the Amnesty Scheme for one-time settlement of default in export obligation. Now, move forward to fill up the application in order to close against the concerned EPCG and Advance Authorization Scheme according to the online proforma.
As an exporter, it is very essential for you to indicate the duty and interest values as per your calculations which you will have to pay under the ‘Redemption Metrix’ tab. All exporters are requested to submit an online application.
You will be provided with a receipt for the application. This application shall be examined by the RA. Once they are done checking the application, they will confirm the shortfall by sending an online letter.
All Indian exporters will have to make the payment of duty and interest to the Jurisdictional Customs Authority. Later, you will be asked to provide proof of the payment in response to the letter which must be delivered online.
The concerned RA might examine the evidence of payments and other related documents to grant an Export Obligation Discharge Certificate (EODC) online. Once it is done, you will be provided with the EODC.

Note: It is instructed to the RAs that they must complete the whole application process of the one-time Amnesty Scheme within 3 days.

What do you need to know about the Amnesty Scheme? - Important Details

The Amnesty Scheme in India’s new Foreign Trade Policy has been introduced by the Indian government to support and provide aid to Indian exporters to enhance their exports on a global level. Here we are sharing with you some important information regarding the Amnesty Scheme introduced in FTP 2023.

Let us first come to the benefits of this scheme. There is a wide range of advantages that exporters can enjoy through this Amnesty Scheme.

Advantages of the Amnesty Scheme

Here is the list of advantages that exporters can enjoy through availing of the Amnesty Scheme.

100% Customs Duty Exemption; The biggest advantage of this scheme is that it will act as a protection on the interest to the extent of 100% customs duty exemption that is to be claimed by exporters.

Relief on interest: No interest is needed to be paid on the portion of additional customs duty and special additional customs duty.

Reopening of all pending EO cases: All the pending cases of Export Obligation default authorization can be regularised by exporters by making the payment of all customs duties exempted in proportion to the Export Obligation that was not fulfilled previously.

Eligibility Criteria for the Amnesty Scheme

It is very essential to know what are the eligibility criteria for the one-time settlement of the Amnesty Scheme.

Cases falling under any kind of investigation for fraud and scam are not eligible to apply for the Amnesty Scheme. Only exporters who have had cases of default export obligation (EO) because of some valid reasons are eligible to opt for the single-time settlement through this Amnesty Scheme.

As an exporter, you must also be aware of the fact that if you have already paid the customs duty adding the interest, then also you will not be able to apply for this scheme.

Deadline for Amnesty Scheme

An official online site has been introduced by the Directorate General of Foreign Trade to apply for the Amnesty Scheme. It has a six-month window which has been made available for exporters so that they can easily avail the advantages that come with this scheme.

Indian exporters must register for the Amnesty scheme on or before 30 June 2023. They must opt for customs duty remittance on or before 30 September 2023 through the procedure that has been mentioned above. This scheme states that the pending cases of EO can be regularised again as per the payment of the exporter’s customs duty.

Conclusion

The government of India focuses on boosting Indian exports and encourages Indian exporters to increase competition in the international markets. With the policy circular dated 17/04/23, the DGFT has laid out the procedure regarding how to apply for the one-time settlement of the Amnesty Scheme.

Here, in this blog, we have provided information regarding all the important aspects that you need to know about the Amnesty Scheme. This scheme has been introduced with the motive to boost more and more Indian exports. If you are planning to start a foreign trade business, you must be aware about everything related to the new Foreign Trade Policy in 2023.