New Delhi: In a bid to boost exports and ease the burden on businesses, the Directorate General of Foreign Trade (DGFT) has announced significant relaxations under the Export Promotion Capital Goods (EPCG) scheme.
The EPCG scheme allows exporters to import capital goods duty-free in exchange for export obligations. The latest amendments aim to provide exporters with more flexibility and time to meet these obligations.
Key highlights of the changes include:
- Extended deadline for installation certificates: Exporters will now have up to three years to submit installation certificates for imported capital goods, with the option to extend this further for a fee.
- Simplified fee structure: The fee structure for extending export obligation periods has been streamlined, reducing paperwork.
- Relaxation for spare parts: The requirement to submit installation certificates for imported spare parts has been eliminated.
- Automated processes: DGFT is moving towards more automated rule-based processes to reduce human intervention and improve efficiency.
These changes are expected to benefit sectors such as electronics, mobile, and IT equipment, which are heavily reliant on capital goods and have committed significant investments under the Production Linked Incentive (PLI) schemes.
Mayank Arora, Director-Regulatory at Nangia Andersen India, stated that the operational amendments would significantly enhance the ease of doing business for exporters. He further added that the extended deadline for installation certificates and the simplified fee structure would provide much-needed relief to businesses.
The DGFT’s move is seen as a positive step towards creating a more conducive business environment for exporters and promoting India’s exports.
