FinMin applies amnesty scheme for traders failing to meet export obligation

The finance ministry has operationalised the amnesty scheme for traders who defaulted in export obligation under the Advance and EPCG authorisation scheme.

As per the amnesty scheme, which was announced in the Foreign Trade Policy on March 31, EXIM traders who failed to meet the export obligation under the Advance and EPCG (export promotion for capital goods) authorisation scheme can come clean by paying customs duty and interest, subject to a ceiling of 100 per cent.

The Central Board of Indirect Taxes and Customs (CBIC) asked principal commissioners/commissioners to ensure that the exporters approaching for paying the duty, etc. are registered with the Directorate General of Foreign Trade (DGFT).

"These cases under the scheme be monitored and tracked so that there is efficient handling and expeditious closure of these old cases of bona fide default in a seamless manner," the CBIC said in a circulate dated May 17.

The authorisation holder choosing to avail this scheme will have to complete the customs duty payment by September 30, 2023.

KPMG National Head, Indirect Taxes, Abhishek Jain said the circular further emphasises the government's intention to settle old disputes with ground officers also being reiterated a similar message with specific focus on expedited closure of disputes.

AMRG & Associates Senior Partner Rajat Mohan said this scheme is aimed at reducing the financial burden on the exporters by helping them resolve their default export obligations.

"It is an initiative towards supporting exporters by providing them with a pathway/chance to rectify their non-compliance, which may have happened due to several reasons," Mohan said.