India Simplifies Export Rules to Help Businesses
The Directorate General of Foreign Trade (DGFT) in India has announced updates to the Export Promotion Capital Goods (EPCG) Scheme to make it easier for exporters. These changes include more time to submit installation certificates, a simpler fee structure for extending export obligations, and more automated processes to reduce human intervention. These updates aim to create a business-friendly environment and improve India’s manufacturing competitiveness.
Key Changes in EPCG Scheme
The new rules provide exporters with an extended period to submit installation certificates for imported capital goods. This extension reduces pressure on businesses, allowing them to focus more on production and export activities.
A simplified and reduced composition fee structure for extending the Export Obligation (EO) period has been introduced. This change minimizes manual intervention, streamlines compliance, and speeds up service delivery.
All Policy Relaxation Committee (PRC) decisions regarding Export Obligation extensions and regularization of exports will now be implemented with a uniform composition fee, making it easier to implement through the system.
Automation and Efficiency
DGFT aims to reduce human intervention by expanding automated rule-based processes. This initiative is part of the new Foreign Trade Policy announced in April 2023. DGFT has already automated several processes, including the authorization issue process, ad-hoc norms fixation process under Advance Authorization, export obligation extension, and automatic status holder certificate issue.
In the coming months, more processes will be system-driven with minimal or no human intervention to facilitate trade and industry.
Doubts Revealed
Directorate General of Foreign Trade (DGFT) -: The DGFT is a government agency in India that helps manage and promote the country’s international trade.
Export Promotion Capital Goods (EPCG) Scheme -: The EPCG Scheme is a program by the Indian government that allows businesses to import machinery and equipment without paying high taxes, as long as they use these goods to produce items for export.
export obligations -: Export obligations are the requirements that businesses must meet to export a certain amount of goods within a specific time frame.
installation certificates -: Installation certificates are documents that prove machinery or equipment has been set up and is ready to use.
automated processes -: Automated processes are tasks done by machines or computers without much human help, making things faster and easier.
manufacturing competitiveness -: Manufacturing competitiveness means how well a country can produce goods compared to other countries, in terms of cost, quality, and efficiency.
