The Director General of Foreign Trade ( DGFT ) has amended the EPCG ( Export Promotion Capital Goods ) Reporting Requirements. The EO ( Export Obligation ) report shall be required only after a 4 years interval until expiry of EO period instead of annual reporting. The amendment also needs documents certified by the CA, CS or Cost Accountant.
Previously, the process for reporting the fulfilment of export obligations (EO) required authorization holders to submit an annual report to the concerned Regional Authority (RA) by June 30 each year.
This report needed to be filed online and included detailed information such as shipping bill or GST invoice numbers, dates of export or supply, product descriptions, and FOB/FOR values. Additionally, any delays in submitting the annual report could be rectified by paying a late fee of ₹5,000 per year per authorization.
Ready to Grow? Choose a Course That Fits Your Goals!
The revised provision, however, introduces a more smooth approach. Under the new rules, authorization holders are now required to submit their reports online only after the completion of the first block period of four years and then continue reporting at regular intervals until the expiry of the EO period.
The updated report must include details such as shipping bill, invoice number, Bill of Export, or Foreign Inward Remittance Certificate ( FIRC ) number, as applicable, and should be certified by a Chartered Accountant, Cost Accountant, or Company Secretary. This certification is crucial as it verifies the fulfilment of both specific and average export obligations, where applicable.
Ready to Grow? Choose a Course That Fits Your Goals!
Existing provision
“Annual Report for EO fulfilment
Authorisation holders shall submit to the RA concerned by 30th June of every year, a report on fulfilment of export obligation through online. Such report shall contain a statement with details such as Shipping bill/GST invoice number, date of export/supply, description of product exported/supplied/service rendered and FOB/FOR value of export/supply for both specific as well as average export obligation. Any delay in filing such annual report shall be regularised on payment of a late fee of Rs. 5000/- per year for each authorisation.”
Ready to Grow? Choose a Course That Fits Your Goals!
Revised provision
“Report for EO fulfilment
Authorisation holder shall submit to RA concerned a report on fulfilment of export obligation through online mode after expiry of first block period of four years and continuously till the expiry of valid EO period. Such report shall contain a statement with details of Shipping bill/invoice number/Bill of Export/FlRC number with date and number, as applicable, duly certified by Chartered Accountant/Cost Accountant/ Company Secretary for evidencing fulfilment of specific as well as average EO (wherever applicable).”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
