Relief measures announced by DGFT

In view of the Covid-19 outbreak, The Directorate General of Foreign Trade (DGFT) have announced extension of various dates for statutory compliances as well as various benefits under the FTP.

The major relief measures announced are as follows:

1. Extension of Foreign Trade Policy (FTP) 2015-20
The FTP 2015-20 incorporating provisions relating to export and import of goods and services which was valid till 31st March 2020 has now been extended till 31st March 2021.

2. Eligibility and rewards under “Service Exports from India Scheme (SEIS)”

Notified services provided by service providers located in India, rendered in the manner as per Para 9.51(i) and 9.51(ii) are eligible under SEIS scheme. The notified services and rates of rewards are listed in Appendix 3D. However, for the FY 2019-2020, such rates shall be notified separately in Appendix 3X. For the services rendered in FY 2020-2021, decision on continuation of the scheme will be taken subsequently and notified accordingly.

3. Extension of Validity of “Duty Free Import Authorization (DFIA)”
Regional Authority shall issue transferable DFIA with a validity of 12 months from the date of issue. However, for all DFIAs (including transferable DFIAs), where the validity for Import authorization is expiring between 1st February 2020 and 31st July 2020, the validity has been extended by six months from the date of expiry.

4.Extension of exemption for imports under Advance Authorisations

Imports against Advance Authorizations for physical exports are exempted from levy of Integrated Tax and Compensation Cess. Such exemption was valid till 31st March 2020 which now has been extended till 31st March 2021.

5.Extension of Validity of “Export Promotion Capital Goods (EPCG)” Authorization
Import under EPCG Scheme are subject to an export obligation equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years from date of issue of authorization. However, in case the validity period for import expires during 1st February 2020 to 31st July 2020, the validity has been extended by 6 months from the date of such expiry.

6. Exemption from levy of IGST and Compensation Cess on Deemed Exports

Imports and/ or procurement from bonded warehouse in Directorate of Treasuries & Accounts (DTA) shall be made without payment of integrated tax and compensation cess leviable thereon under section 3(7) and 3(9) of the Customs Tariff Act, 1975. Such exemptions would now be available till 31.03.2021 from earlier 31st March 2020.

7.Extension in last date for filing of SEIS application

The last date to apply for online application under SEIS scheme is 12 months from the end of the financial year for which the application is being filed. Thus, for the FY 2018-19, the due date was 31st March 2020, the same has now been extended upto 31st December 2020.

8. Extension of Validity of Registration Cum Membership Certificate (RCMC)

In order to claim benefits under FTP, it is required to have a valid RCMC as on date of application. However, the DGFT has decided to provide a relief that in case the RCMC has expired on or before 31st March 2020, the same shall not be asked for by the Department in order to approve any incentive/authorisation, till 30th September 2020.



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