The Directorate General of Foreign Trade has announced significant enhancements to the Export Promotion Capital Goods (EPCG) Scheme (DGFT). Through the simplification of processes, reduction of transaction costs, and promotion of automation, these enhancements are meant to benefit exporters.
In order to provide exporters additional time to submit Installation Certificates for Capital Goods they have imported, the program has been modified.
This expansion relieves some of the pressure on businesses, allowing them to focus more on production and exporting. To further extend the Export Obligation (EO) timeframe, a more easy and reasonably priced composition charge method has been put in place. This change streamlines compliance, decreases the need for manual intervention, and speeds up service delivery.
Furthermore, in order to facilitate systemic implementation, all decisions made by the Policy Relaxation Committee (PRC) concerning the regularization of exports and extensions of the Export Obligation will now be accompanied by a uniform composition charge.
“With these updates, exporters can comply with regulations more easily and save time and effort when meeting DGFT requirements.” The Commerce Ministry stated on Friday that “DGFT seeks to reduce human intervention, mitigate risks, and improve overall efficiency in trade facilitation by expanding automated rule-based processes.”
“These changes align with the commitment of the government to create a more business-friendly environment and improve India’s manufacturing competitiveness,” stated an official release.
In an effort to increase the number of automated rule-based operations, DGFT has been actively modernizing its systems since the new Foreign Trade Policy was announced in April 2023. The statement went on to say that these programs are essential measures in creating a more business-friendly atmosphere and raising India’s competitiveness in the international market.
