DGFT Revamps EPCG Scheme to Boost Exporter Efficiency and Competitiveness

The Directorate General of Foreign Trade (DGFT) has revamped the Export Promotion Capital Goods (EPCG) Scheme to ease processes, cut costs, and promote automation. Key changes include extended periods for installation certificates submission, simplified fee structures, and expanded automated rule-based processes, all aiming to enhance India's global market competitiveness.

The Directorate General of Foreign Trade (DGFT) unveiled enhancements to the Export Promotion Capital Goods (EPCG) Scheme, focusing on process simplification, cost reduction, and automation to benefit exporters. The notification, dated July 25, aligns with governmental efforts to create a more business-friendly environment and bolster India's manufacturing competitiveness, an official release stated.

The changes to the scheme provide exporters an extended deadline for submitting installation certificates for imported capital goods. This extension aims to relieve business pressure, enabling companies to concentrate on production and export activities, according to the release.

Furthermore, a simplified and reduced composition fee structure for extending the Export Obligation (EO) period has been introduced. This measure will reduce manual interventions, streamline compliance, and expedite service delivery. Additionally, all Policy Relaxation Committee (PRC) decisions regarding Export Obligation extensions and export regularization will now involve a uniform composition fee, simplifying system implementation.

These updates facilitate regulatory compliance for exporters, minimizing the time and effort needed to meet DGFT requirements. By expanding automated, rule-based processes, DGFT aims to decrease human intervention, mitigate risks, and enhance overall trade facilitation efficiency. Since announcing the new Foreign Trade Policy in April 2023, DGFT has been modernizing its systems to incorporate more automated processes.

These initiatives are pivotal in fostering a more business-friendly environment and boosting India's competitiveness in the global market. Recently, DGFT has automated various processes such as authorization issuance, ad-hoc norms fixation under Advance Authorization, export obligation extensions, and automatic status holder certification.

In the forthcoming months, DGFT plans to further systematize processes, striving for minimal or no human intervention to facilitate trade and industry effectively. (ANI)

(With inputs from agencies.)