Under the Export Promotion Capital Goods (EPCG) scheme, the exporters are required to maintain annual average exports of past three years for the same or similar products that are capable of being produced with the use of imported capital goods or any other substitute that products that they manufacture.
While calculating the annual average, the exports can now deduct the exports made in discharge of export obligation against EPCG authorisations/licenses issued earlier but which have not been redeemed.
This helpful provision existed earlier. But, from April 1, 2007, the provision was removed for no good reason. The provision has now been restored with retrospective effect from April 1, 2007. The exporters who have already obtained EPCG licenses/authorisations after April 1, 2007 can use the latest public notice no. 39/2008 dated 4th July 2008 to get the annual average figures reduced and lessen the burden imposed on them.
For late applications , the provisions to allow the claims with a late cut were rather harsh. Last year, the DGFT eased the burden by reducing the extent of cut by allowing applications submitted within six months of the last date to 2 per cent and submitted within further six months to 5 per cent. But, applications submitted after 12 months after last date were being rejected. Now, the DGFT has allowed further 12 months time with a late cut of 10 per cent. (Public Notice no. 45 dated July, 7, 2008).
Imports of fuel under advance authorisations were being allowed, as per General Notes to Standard Input Output Norms (SION), only where the applications were made on the basis of notified SION. Now, the DGFT has allowed (Public Notice no. 42/2008 dated July 4, 2008) fuel even against applications made under Para 4.7 of the Handbook of Procedures or against ad hoc norms.
Due to divergent interpretation of the provisions for revalidation of Duty. Free Import Authorisation (DFIA) scheme, many authorisations could not be utilised in time for import clearances. So, the DGFT has now allowed revalidation for a further period of six months for DFIA issued during May 1, 2006, till March, 31, 2007 and which have already been endorsed with transferability, even if the original import validity of 24 months has already expired.
Applications for such revalidation must be submitted before August 2, 2008. For DFIA issued after March 31, 2007, revalidation will be considered only for DFIA with
