February 7, 2023

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EPCG Scheme – Compliances to be fulfilled after taking an EPCG Licenses

 

On this weblog, we will be able to quilt an important matter which is most commonly left out & overpassed through lots of the exporters i.e. what are the compliances to be adopted after taking an EPCG Authorization/Licenses in order that the corporate does now not draw in any undesirable consequences from the Executive division.

Watch this quick introductory video at the EPCG scheme, and is the reason the advanced idea of EPCG in an easy-to-understand way. It describes the EPCG scheme and the necessities that should be met after receiving the license.  

 

We can divide this weblog into 5 separate sections for more straightforward figuring out.

 

Factor of extra Responsibility Stored price

If in case you have acquired EPCG license from DGFT and registered it at Customs through executing a bond or BG. One Necessary factor is don’t omit to keep a duplicate of Bond & Financial institution Ensure for long term reference functions. You’re ready for Import of equipment now.

Assume the Responsibility Stored Worth (DSV) discussed at the License is 10 Lakhs, Alternatively, on the time of exact import and as according to Invoice of access filed, it will increase to ten.5 Lakhs. i.e. an Building up of 50K. Customs will permit an build up upto 10% of DSV, however after the Imports takes Position, you must pay an extra charges to DGFT at the extra quantity of DSV applied i.e. 50K. The charges to be paid to DGFT might be 0.1% of Rs. 50,000 i.e. 50,000 divide through 1000, which is the same as Rs. 50.

For Licenses acquired prior to 01.04.2015, This charges must be paid inside 1 month from the Date of import, in a different way it’s going to draw in a penalty of Rs. 5,000/-. Max prohibit to pay this charges is two years.

For Licenses acquired 01.04.2015, the Executive has comfortable this situation, and in such circumstances the costs of Rs. 50 is to be paid on the time of EODC/Redemption.

Submission of Set up Certificates to DGFT & Customs.

As soon as the equipment is put in, exporter has to acquire an Set up Certificates both from jurisdictional Customs Authority or Impartial Chartered Engineer.

This Set up Certificates must be submitted to DGFT inside 6 months finishing touch of Imports. If now not performed it’s going to draw in a penalty of Rs. 5000/-. Max prohibit to publish is 365 days.

If the license holder obtains Set up Certificates from CE, then a duplicate of Set up Certificates must be submitted to jurisdictional Customs Authority for his or her Intimation/Document.

Citing of EPCG license No. of delivery Expenses.

In line with the former standing, the machines have been imported and put in. Now the manufacturing will get started and exports will happen to meet the export legal responsibility. Right here whilst exporting Please you’ll want to report the delivery expenses beneath EPCG scheme and point out proper EPCG License No. & date.

Additionally ensure the outline & HS code of export merchandise in delivery expenses suits with that of EPCG license.

Annual reporting of Export Legal responsibility success.

Through 30th June of each and every yr, the license holder has to publish a file giving main points of EO success to DGFT RA via on-line. This file will comprise main points of explicit & reasonable EO success for that specific yr.

This reporting will get started from FY 22-23 onwards. The ultimate date of filling for 22-23 has been prolonged to 30.09.2022, and then there might be a penalty of Rs. 5000/-

From FY 23-24 the ultimate date could be 30th June and penalty of Rs. 5000 for each and every yr might be appropriate if the compliance isn’t adopted.

Block-wise success of EO

EPCG license comes with 6 years duration; out of which 1st to 4th Yr is 1st Block & 5th to sixth Yr is twond Block. As according to coverage minimal 50% of Explicit EO must be fulfilled within the first block itself.

The Authorisation holder would intimate the Regional Authority at the fulfilment of the export legal responsibility, in addition to reasonable exports, inside 3 months finishing touch of the block.

If the Block-wise EO isn’t fulfilled the license holder has to use for Block-wise extension inside a specific time period.

For Licenses acquired prior to 01.04.2015, the applying must be filed inside 3 months of expiry of Block.

For Licenses acquired after 01.04.2015, the applying must be filed inside 6 months of expiry of Block, Publish which past due charges might be appropriate as according to this Symbol.

Please word that identical past due charges provisions are appropriate for EO Length extension as neatly, the similar may be defined within the Symbol.

LATE FEES PROVISIONS FOR BLOCK-WISE EXTENSION

The place extension is implemented
Composition rate/ Past due rate
Inside of 6 months from the expiry of first block Composition rate of two% could be payable
After the mentioned 6 months  however as much as 6 years from the authorization date * Composition Price + Past due rate Rs. 10,000 according to authorization
6 years onwards Composition Price + Past due rate Rs. 10,000 according to authorization + Further past due rate Rs. 5,000 according to yr according to authorization

LATE FEES PROVISIONS FOR EO PERIOD EXTENSION

The place extension is implemented
Composition rate/ Past due rate
Inside of 6 months from the expiry of EO Length Composition rate of two% could be payable
After the mentioned 6 months  however as much as 8 years from the authorization date * Composition Price + Past due rate Rs. 10,000 according to authorization
8 years onwards Composition Price + Past due rate Rs. 10,000 according to authorization + Further past due rate Rs. 5,000 according to yr according to authorization

How are we able to let you?

We at Afleo Crew, are a staff of DGFT & Customs Professionals having a wealthy enjoy of 10+ Years in Exim Consultancy & Global Logistics [Freight Forwarding]. With our huge wisdom and enjoy on this box we will constitute your case for all of the actions bearing on the EPCG scheme and get it cleared in a bother loose way.

So do get involved with us for any of your necessities and our staff might be glad that will help you.

Tell us when you’ve got any doubts within the beneath segment.

We request you to percentage this weblog along with your different Business buddies, Business associations, as this knowledge would possibly assist them as neatly.

Thank You.