Export

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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Change in Duty Drawback Rates w.e.f 03rd May 2024

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CBIC announced changes in the Duty Drawback rates on certain products effective from 03.05.2024.

The Notification No. 33/2024-CUSTOMS (N.T.) Dated 30.04.2024 was issued to this effect.

The Major chapter for which products the changes have been notified include
Chapter No. 3,16,42,63,72,75,81,85,87,88 & 93.

Exporters specially of these chapters may check the new applicable Duty Drawaback rates effective from 3rd May 2024.

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Exporters to apply NEW GST LUT for FY 2024-25

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As per the GST Rules and Procedure, Exporters exporting without payment of tax, needs to apply for Letter of Undertaking (LUT). The LUT is valid for every financial year.

Thus, as we come close to the financial year 2023-24 and the new FY 2024-25 will begin from 01st April 2024.

We wish to draw your attention that exporter must visit the GST portal and submit the new Letter of Undertaking (LUT) for the Financial Year 2024-25.

The Procedure is simple and will take not more than 5 mins online.

So to avoid any last minute hassles and challenges, request exporters, to visit the GST Portal today and submit and get their new LUT ARN No. for FY 2024-25.

Regards
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