Banks should not hold up crediting exporters money due to fault of ICEGATE

We have received a system generated email from the DGFT alleging non-fulfillment of export obligation (EO) against many of our advance authorisations and EPCG authorisations issued between 2002 and 2007. We do not have any pending EO against these authorisations. It is too difficult to retrieve records in respect of authorisations issued 15-20 years back. We understand that we are required to preserve records only for 2-3 years from the date of redemption. So, please let us know how the government can demand such records and what we should do.
 

The government officers have the powers that they use or misuse depending on various factors/situations and there is no accountability in such matters. So, I suggest you better focus on compliance. You are right that the records pertaining to such authorisations need not be preserved after 2-3 years of redemption but you must and I think you would have preserved the EODC issued by the JDGFT. You may submit the same to the JDGFT and request closure of the matter. You may also refer to the DGFT Trade Notice no.1 dated April 6, 2023 asking the regional authorities to update the EODC issued in the EODC online monitoring system for advance/EPCG authorisations and asking the exporters to verify the EODC status in the online system and submit the EODC details of redeemed authorisations to the JDGFT for updating. Apparently, EODCs issued manually have not been updated in the online system.
 

For two of our shipments which went through the regular process in Delhi, our bank is saying that the shipping bill is not reflected in the EDPMS. In the absence of this they are not giving us credit for the payment which has been received from our customer. Our customs broker approached the Customs who said that they cannot do anything as the problem appears to be with the ICEGATE. We have been writing to the ICEGATE helpdesk for the last two weeks but no resolution is found. How to resolve this issue?
 

Many other exporters have also told me that they are facing the same problem but in their cases, their bankers did not hold up the credits to their accounts. On the outstanding EDPMS entry you can't do much except follow up with ICEGATE. But, I don’t think your bank is correct in holding up your money. If they are stubborn at the operating levels, you may approach the higher authorities in the bank or its Ombudsman or even RBI for getting your money.
 

We refer to the DGFT Trade Notice no.3 dated May 10, 2024 clarifying that the notification no.71 dated March 11. 2024 will apply for advance authorisations issued after the date of that notification. Can we get exemption from QCO orders for imports under advance authorisations issued before that date?
 

Yes, in accordance with the DGFT Policy circular no.40 dated February 2, 2001. The conditions prescribed in the said notification 71 will not apply in such cases.