DGFT issues Notice w.r.t. EOD Certificate for Advance Authorization and EPCG Process from DGFT Portal

DGFT - EOD Certificate for Advance Authorization - EPCG Process - DGFT Portal - EPCG Process from DGFT Portal - EOD Certificate - DGFT Portal - taxscan

In order to facilitate the issuance of an Export Obligation Discharge Certificate (EODC) for Advance Authorization (AA) and Export Promotion Capital Goods (EPCG) processes from the DGFT portal, the Directorate General of Foreign Trade (DGFT) has issued Trade Notice dated April 6, 2023. The RA is responsible for creating all MIS reports using the most recent online data.

Regarding the online functionality for AA and EPCG authorisation holders to change closure or redemption status on the DGFT Website (https://dgft.gov.in) of manually issued EODC in case mistakenly reported on the DGFT portal, refer to an earlier Trade Notification No. 24/2022-23 dated 12th January 2023.

The Indian government issues the Export Obligation Discharge Certificate (EODC) to exporters who have completed their export obligations under several export promotion programmes, including Advance Authorization, Duty-Free Import Authorization (DFIA), and Export Promotion Capital Items (EPCG).

For exporters who have utilised the Advance Authorization scheme and other similar programmes, it is a crucial document since it enables them to fulfil their export duties and qualify for a number of benefits.

As per the notification, it is informed that:

  1. Online application for redemption/closure of licence may be submitted by navigating to DGFT website –> Services –> AA / EPCG –> Closure of Advance Authorisation / Closure of EPCG.
  2. AA closure applications may be submitted with or without data validations
  3. With Validation Route- Given that the complete dataset such as shipping bills / Bills of Entry / eBRC / GST invoices / Bills of Exports / Tax Receipts etc. is available in an online system.
  4. Without Validation Route- Application may be submitted even with data (such as shipping bills / Bills of Entry / eBRC etc.) exceptions.

3. EPCG closure applications may also be submitted online without validation.

The Authorization holders may submit EODC status update requests to the RA for processing in circumstances where physical files are delivered to the RA for redemption. It was instructed that:

  1. RA may suo-moto update the licence status by navigating to License Room, select relevant License number –> Click on “EODC Status Update” button and generate the EODC letter online.
  1. By accessing the DGFT website, authorization holders can submit EODC status update applications –> Services –> AA / EPCG –> EODC Status update.

The holder of the authorization would nevertheless submit an application for redemption through the DGFT site even if some documents needed physical submission (without validation). Regional Authorities will review the case in accordance, and communication with the applicant must be done online via the DGFT portal.

To expedite the discharge of the Customs bond and other relevant activities at the Customs port, it should be noted that any such EODC issued online is electronically transferred to the Customs ICEGATE System in almost real-time.

Both online applications that call for physical submission and those that don’t are available through the aforementioned online options. As a corollary, it is necessary that no Export Obligation Discharge Certificates (EODC) be given manually or via any outdated IT system ((LEMIS System) as of right away.

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