DGFT

Interest Equalisation Scheme(IES) gets extension

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The Interest Equalisation Scheme (IES) for Pre- Shipment and Post- Shipment Rupee Credit has been extended for MSME manufacturers for 3 Months upto 31st Dec 2024.

However, the total benefit under the scheme will be restricted to Rs. 50 Lakhs for FY 24-25 till 31st Dec 2024.

Exporters who have already available the benefit of Rs. 50 Lakhs or more till Sept 2024 will not be eligible for the benefit in the extended period.

Exporters can refer to the DGFT Trade Circular No. 18/2024 -2025 Dated 30.09.2024.

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RoDTEP Scheme Extension and New Rates

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The DGFT, via Notification No. 32/2024-25 dated 30.09.2024, has extended the RoDTEP Scheme as follows:

  1. The RoDTEP Scheme for goods manufactured by Domestic Tariff Area (DTA) units has been extended from 30.09.2024 to 30.09.2025 (one year).
  2. The RoDTEP Scheme for the export of goods manufactured by Advance Authorisation Holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs) has been extended from 30.09.2024 to 31.12.2024.

The notification also specifies that, in both cases, the scheme beyond 30.09.2024 will adhere to the budgetary framework, ensuring that the expenditure remains within the approved budget.

Additionally, new RoDTEP rates, based on the recommendations of the RoDTEP Committee, will be notified with effect from 10.10.2024 under the revised Appendix 4R and Appendix 4RE which will be uploaded on DGFT website.

For exports made between 01.10.2024 and 09.10.2024, the existing rates will continue to apply.

Exporters are requested to refer to the notification and the revised appendices available on the DGFT website or via the following links:

1. Notification No. 32/2024-25 Dt. 30.09.2024

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One Month Extension for Interest Equalization Scheme (IES)

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DGFT vide its Trade Notice No. 16/2024-2025 dated 31st August 2024 has extended the Interest Equalization Scheme for Pre & Post Shipment Rupee Credit from 31st Aug 2024 to 30th Sept 2024.

However, this extension is only for MSME Manufacturers who can claim IES @ 3%.

Apart from the extension of the date, all terms remain same as per relevant RBI Notifications.

MSME Manufacturer Exporter can continue to avail the benefit for 1 more month under IES.

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Bulk Upload & API Integration for eBRC Now Active and Live

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In continuation to DGFT Trade Notice No. 12/2024-25 dated 14th August 2024 regarding API Integration on the Bulk Upload Facility for Self-Certification of eBRC, the feature is now active and live on the DGFT website.

The option for Bulk Upload for eBRC generation is available under the eBRC option in the services tab.

In the Bulk Upload Option, the exporter can select the eBRC Type and upload the Excel File for the Bulk Upload.
A Sample File Excel file can be downloaded here also the Instruction Manual can be downloaded here

For API Linking and details, the details are provided on DGFT portal with the technical details and help files on the DGFT website.

The Technical Team of the exporters can refer to the documentation and details for using the API tool.

Exporters can now utilize the new facilities under the eBRC for self-generation.
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Bulk Upload & API Integration for eBRC starts from 20.08.2024

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In Continuation of Online Self Certification Process of eBRC, DGFT has introduce two additional functionalities.

1. Bulk Upload
2. API Integration

The Bulk Upload will allow exporters to generate Multiple eBRCs concurrently through the bulk upload functionality. The exporter can upload the spreadsheet with data in the required specified template.

The Application Programming Interface (API) Integration allows exporters to connect their own ERP or Accounting Software, directly to DGFT eBRC System and thereby generate and verify the eBRCs. A detailed process to activate and authenticate the API usage needs to be followed.

Both the above facilities will be effective from 20th Aug 2024.

Exporters must refer to DGFT Trade Notice No. 12/2024-25 Dated 14th August 2024 in this regard.

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Reduction and Ease of Compliances for EPCG Authorisation

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In the aim to reduce the Compliance Burdern and enhance “Ease of doing Business” DGFT, has amended various procedure under Chapter 5 of the FTP for the EPCG Scheme.

The Public Notice No. 15/2024-25 Dated 25.07.2024 applicable from immediate effect will assist and ease lot of procedural challenges for EPCG Licence holders.

The key points of the Public Notice are as below:

1. Amendment to HB Para 5.04 (a) now allows EPC Authorisation holder to submit Installation Certificate within 3 years from date of completion of import instead of 6 months earlier.

2. In case of further delay in submission beyond 3 years, RA may allow extension of period of submission with a composition fee of Rs. 10,000/- per year within the EO Period.

3. The Installation Certificate submission period for Import of Spares under HB Para 5.04(b) has been now deleted.

4. In focus of ease of doing business, the Block Extension composition fees which were 2% of the unfulfilled portion of EO and some late fee has been changed with a fixed fee structure on the basis of Duty Saved Value of EPCG Authorisation ranging from Rs. 5,000 to Rs. 45,000 at max.

5. Similarly, EO Period Extension beyond 6 years from the date of expiry has been now allowed with a fixed fee structure on the basis of the Duty Saved Value instead of the 2% of unfulfilled portion.

6. These new provisions also apply to EPCG Authorisations issued under FTP 2015-2020.

Thus, EPCG Authorisation Holders will now have much more ease in compliances under the scheme and the Block and EO Extensions would be endorsed faster reducing time and compliance efforts.

All EPCG Authorisation holders must refer the details in the Public Notice and take the necessary benefit.

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New SIMS Module 2.0 Launched

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New Platform for Steel Import Monitoring System (SIMS) is been launched.
Trade Notice [TN 10/2024-25 Dt. 25.07.2024] issued by DGFT on 25.07.2024, hereby informs that a New System Steel Import Monitoring Systems (SIMS) 2.0 is launched with immediate effect.

The New SIMS 2.0 is effective immediately. [https://sims.steel.gov.in]

All applications from 25.07.2024 after 2pm will not be made on DGFT (dgft.gov.in) website but from the New SIMS 2.0 portal – https://sims.steel.gov.in

Applications already submitted until this change, will be available for download from the DGFT website until further notice.

A dedicated SIMS 2.0 Helpdesk is also made available via telephone and email

Helpdesk No. 01123213945 / 01123214201
Helpdesk Email: simshelpdesk@mstcindia.in

Importers of the Steel Products who need to register for SIMS must note this new change.

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DGFT adds new IT based system for Ad-hoc Norms

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In its continuous efforts to simply, automate and ease of doing business, DGFT has now added a new sub para under para 4.14 HBP 2023.

The new Sub Para (iii) of 4.14 states:

Ad-hoc Input Output Norms may also be decided in a rule-based IT environment without reference to Norms Committee. However, a certain percentage of cases as flagged by the RMS may be referred to NORMS Committee for validation/review.

This will ease the process of Ad-hoc Norms and also reduce the timeline for the same.

The Public Notice also further added new sub para 4.06(vii) which allowed Norms Committee to recommend cases which come for Ad-hoc Norms to be notified as SION on case-to-case basis.

Both the above provisions will really help exporters and smoothen the process of Ad-hoc Norms related activities under Advance Authorisation.

The Public Notice No. 51/2023 Dated 14.03.2024 can be downloaded from link below:
https://content.dgft.gov.in/Website/dgftprod/482e2b8e-a091-4266-b347-1646c08071f2/Public%20Notice%20English.pdf

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RoDTEP benefits extended to export made by AA holders, EOUs and SEZ Units

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Finally, the long pending demand from the exporters and in recommendation of RoDTEP committee Report, the DGFT amends the Ineligible Supplies / items/Categories under RoDTEP Scheme there by allowing RoDTEP benefit to exports made by Advance Authorisation holders, EOUs and SEZ Units.

The DGFT Notification No. 70/2023 Dated 08th March 2024 issued in these respected amended certain provisions of the RoDTEP Scheme.

1. Sr. No. viii, x, xi and xii of Para 4.55 of FTP has been deleted w.e.f 11.03.2024

2. Sr. No. vii of Para 4.54 has been amended to added the rates of RoDTEP notified under Appendix 4RE (for exports of goods manufactured by AA holders, EOUs and SEZ Units)

3. A New Para 4.59A has been added which allows RoDTEP on eligible items at the rates and per unit value cap as applicable under Appendix 4RE as available on DGFT Portal (www.dgft.gov.in).  Click here to download Appendix 4RE.

4. The benefit of RoDTEP for exports done by Advance Authorsation Holders(except deemed exports) and EOUs will be from 11.03.2024 till 30.09.2024 only. 

5. The benefit of RoDTEP for exports done by SEZ units will be once IT Integration of SEZ units is done with ICEGATE System. This same is expected from 01.04.2024. The benefit will be available from date of implementation till 30.09.2024 only.

6. RoDTEP Rates for 25 HS Codes are revised to manage the budgetary outlay for RoDTEP benefits for export of goods manufactured by Advance Authorsation Holders, EOUs and SEZ Units. Click here to download the List: 25 Items Revised Appendix 4R

7. The RoDTEP Scheme is now extended to exports till 30.09.2024

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DGFT enables provision for Import of Inputs without QCOs under AA and EOU

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In a move to assist and enable exporters importing inputs without mandatory compliance under various Quality Control Orders (QCO) under AA or by EOU Units, the DGFT issued notification and added a new para 4.18A and amended para 6.07 (k).

The Notification No. 69/2023 Dated 07.03.2024 can be downloaded from the DGFT Website or link here: https://content.dgft.gov.in/Website/dgftprod/4c0e420c-70dd-488f-8b88-5b9a7347bad2/Noti69%20eng.pdf

The Conditions to be fulfilled for the exemption under AA are:

1. Import without compliance to mandatory QCOs will be subject to Pre-Import Condition

2. Exemption from Mandatory QCOs will be specifically endorsed on AA upon request of the AA holder.

3. Inputs imported with mandatory QCOs will not be transferred to DTA event after regularization of export default.

4. If unutilized, required procedure of destruction and duty payment with interest needs to be followed.

5. Exemption from QCO will be available only for Physical Exports and not for Deemed Exports.

6. Facility of Clubbing is not available for these authorisations.

Also, the Notification amends the para 4.24 of FTP not allowing Import of Inputs without mandatory QCOs under DFIA.

For EOUs, amendment is done to para 6.07 to allow import of inputs without mandatory QCOs subject to conditions and undertakings.

DGFT has also issued Public Notice No. 47/2023 dated 07.03.24 which notified Appendix 2Y which provides list of Ministries/Departments who’s notification on Mandatory QCOs are exempted by the above notification.

Currently 2 Ministry / Departments are notified
1. Ministry of Steel (Mos)
2. Department of Promotion and Industry and Internal Trade (DPITT)

Public Notice can be downloaded from the link here:
https://content.dgft.gov.in/Website/dgftprod/e345325b-70a9-4796-ba24-183fc0bcb8be/PN47%20eng.pdf

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