Export

New DGFT Update: Electronic Submission of Appendix 4H Certificates for Advance Authorisation

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For quite some time, the Directorate General of Foreign Trade (DGFT) has been transitioning its procedures to online platforms and digital systems. As per Para 1.04(f) of the Handbook of Procedures (HBP), electronic systems must be introduced to facilitate the uploading of digitally signed documents by certifying authorities such as Chartered Accountants (CAs), Company Secretaries (CSs), and Cost Accountants.

Now, through DGFT Trade Notice No. 21/2024-25, dated October 17, 2024, the DGFT has announced a new facility for certifying authorities (i.e., CAs, CSs, and Cost Accountants) to digitally link Appendix 4H for Advance Authorisation applications and DFIA (Duty-Free Import Authorisation) schemes.

The Trade Notice outlines the workflow for both exporters and certifying authorities. Key highlights include:

  1. Online Submission: Exporters can now fill in Appendix 4H-related data online through the DGFT website.
  2. Forwarding to Certifying Authorities: Exporters can forward draft Appendix 4H data to their certifying authority online via the certifying authority’s registration number.
  3. Registration of Certifying Authorities: Certifying authorities (CAs, CSs, Cost Accountants, etc.) can register on the DGFT platform under the category “Certifying Authority.”
  4. Viewing and Approval: Once the exporter submits the data to the certifying authority through the DGFT website, the certifying authority can view and approve the Appendix 4H using their DGFT credentials.
  5. Digital Signature: The certifying authority can digitally sign and approve Appendix 4H.
  6. Exporter Access: The approved Appendix 4H will be available for viewing and downloading by the exporter and will be automatically linked to the redemption application for the Advance Authorisation and DFIA schemes.

This new digital feature for Appendix 4H is a significant enhancement for exporters, as it streamlines the process and reduces the time required for application and redemption under the Advance Authorisation & DFIA Schemes.

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Clarification on RCMC Requirement for Remission-Based Schemes

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Exporters have frequently encountered confusion regarding whether an RCMC (Registration-Cum-Membership Certificate) is required to claim benefits under various schemes of the Foreign Trade Policy (FTP).

The DGFT, through its Trade Notice No. 19/2024-25 dated 04.10.2024, has clarified that schemes such as Duty Drawback, Rebate of State & Central Taxes and Levies (RoSCTL), and Remission of Duties and Taxes on Export Products (RoDTEP) fall under the category of Remission-Based Schemes, and the requirement of an RCMC does not apply to these schemes.

Exporters can claim benefits under these schemes without obtaining an RCMC.

However, exporters applying for any authorization to import/export under the FTP, which are distinct from the Post Export Remission-Based Schemes, will still require an RCMC, as per Para 2.57 of FTP 2023.

Exporters are advised to refer to the Trade Notice for further details.

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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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Important Update on Export Policy for Non-Basmati White Rice

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The Directorate General of Foreign Trade (DGFT), through Notification No. 31/2024-25 dated 28.09.2024, has amended the export policy for Non-Basmati White Rice (Semi-milled or wholly milled rice, whether polished or glazed; Other) under HSN Code 1006 30 90. The export status has changed from “Prohibited” to “Free,” effective immediately from 28.09.2024.

Please note, however, that exports are subject to a Minimum Export Price (MEP) of USD 490 per tonne.

For further details, exporters should refer to the official notification available on the following link: DGFT Notification No. 31

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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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SCOMET Items updated vide Amendment in Appendix 3

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DGFT vide Notification No. 25/2024 dated 02.09.2024 issued a new updated Appendix 3 (SCOMET Items) list.

The New SCOMET Appendix is available on the DGFT Portal under the heading “Regulatory Updates” and under the Sub Heading ” Import, Export and SCOMET Policy”,
under SCOMET List Tab.

The industry will be provided 30 days from the date of issuance (i.e from 02.09.2024) for the transition time.

Exporter are requested to review the SCOMET Items and effectively be prepared for their exports.

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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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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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