DGFT ready to accept e-applications

EXIM MATTERS

The Director-General of Foreign Trade (DGFT) has directed that from January 16, 2006, all applications for advance licences (where standard input-output norms are notified), advance licences for annual requirements and export promotion capital goods (EPCG) licences shall be accepted on the DGFT website "" www.dgft.gov.in "" only with a digital signature.

The licence fee for such applications will also be accepted only through the electronic fund transfer (EFT) mode from accounts maintained with ICICI Bank, IDBI Bank, UTI Bank, HDFC Bank, State Bank of India, Bank of India or Punjab National Bank.

Where exporters want advance licence for export items for which standard input-output norms have not been notified, they can file manual applications or ECOM applications i.e. applications filed electronically with a password granted by the licensing authorities, but not digitally signed.

While filing the digitally signed applications, the applicants may scan copies of any documents to be submitted and transmit electronically or submit hard copies separately within five working days and collect the licence. The licensing offices will issue hard copies of licences and transmit the details electronically to the customs directly.

Exporters have to, however, file licence amendment requests in writing i.e. paper form. The licensing authorities will transmit details of any amendments to the licence to the customs electronically.

Changes effected in the advance/EPCG licences with EDI (Electronic Data Interchange) Port of Registration will have no sanctity unless the customs receive the amendments electronically from the licensing authorities.

The DGFT has advised that exporters must submit complete data relating to description of goods to be imported/exported while making on-line applications. Applications with generic description like "list of goods attached" etc. and with incomplete/missing 8 digit ITC(HS) codes will be deemed to be incomplete and rejected.

The DGFT had already directed that in respect of shipments through 23 customs stations where shipping bills are processed through the electronic data interchange (EDI) system after October 1, 2005, all applications for duty entitlement passbook (DEPB) must be made electronically with digital signatures and with application fee through EFT mode. Now, he has added ten more Customs EDI stations to the list and withdrawn Raxaul and Petrapole from it.

In exceptional circumstances, where the EDI customs ports allow clearance of manual DEPB Shipping Bills instead of EDI Shipping Bills, exporters must file manual applications.

For DEPB shipments from non-EDI customs ports, exporters may file ECOM applications or digitally signed applications. In all cases of EDI DEPB Shipping Bills where "third party" (whose details are available in the EDI DEPB Shipping Bill) wants to claim the DEPB, the "third party" shall have to submit a manual DEPB application.

Exporters filing claims under Vishesh Krushi Upaj Yojana (VKUY) scheme are now permitted to file multiple applications relating to applications for exports made for FY 2004-05.

Each ECOM application should not have data relating to more than 25 shipping bills. The DGFT has now given a significant impetus to the on-line automation process that will reduce the transaction costs for exporters.

He has also directed the licensing authorities to assist small exporters file their applications through ECOM mode. The DGFT must now evaluate as to whether so many export promotion schemes are necessary in the first place and whether most of them can be administered through a single agency.

tncr@sify.com