EFT account mandatory

The Directorate General of Foreign Trade (DGFT) reminded importers that it is mandatory for those registered under the export incentive scheme to adopt the system of remitting licence fee through the electronics fund transfer (EFT) mode from April 1.

Announcing this at a seminar conducted by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Thursday, regional joint director of foreign trade M Balagangadharan pointed out that remitting the licence fee through ETF had been an optional mode for the last six years.

"It is now mandatory for all entrepreneurs seeking export incentives to open an EFT account. This will greatly reduce the hardship for entrepreneurs and the DGFT," he added.

Earlier, an entrepreneur had to submit nine sets of applications manually at the regional DGFT office to claim export incentive. Now, the application has been reduced to a three-page digital document that can be submitted on the DGFT website. This is possible only if the entrepreneur holds an EFT account and a digital signature, Balagangadharan explained.

He pointed out that the electronic submission of applications for advance licence, EPCG licence and DEPB licence with digital signature on the DGFT website is mandatory.

Applications with digital signature will get 25 per cent fee concession while those submitted with digital signature and EFT will get a 50 per cent concession, Balagangadharan explained.

He urged the trade and industry to complete the necessary formalities for operationalising the EFT accounts to ensure that their import/export shipments are not affected.

"A process, which consumed almost a day of entrepreneurs, will now be completed in minutes," he stated.