Clarification with regard to Interest Equalisation Scheme (10 Jul)
The Directorate General of Foreign Trade had earlier extended the Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit till 30th June 2024. In this regard, it has clarified the following:
- The Scheme will be capped at Rs. 1.66 crores per IEC for the period from 1st July 2024 to 31st August 2024.
- The extension is applicable only to MSME Manufacturers Exporters who are eligible for the benefit of 3%.
- Applicants would not be required to generate revised UIN for the extended period, if the applicants have already generated UIN for 2024-2025.
Amendment to the Handbook of Procedures with reference to Export Obligation (16 Jul)
The Directorate General of Foreign Trade has amended the Handbook of Procedures and reduced the penalty for exporters, facing a shortfall in fulfilling the value of export obligation. Earlier, any exporter that fulfilled the export obligation quantity, but failed to fulfil the value of export obligation, was not subject to any penalty, provided the Minium Value Addition requirement was met. However, in case the Minimum Value Addition was less than prescribed, the exporter was subject to a penalty equivalent to 3% of the FOB value of shortfall. The penalty has been reduced to 1% of FOB value.
Verification of authenticity using the Unique Document Identification Number (23 Jul)
The Directorate General of Foreign Trade has clarified that the online portal allows for verification of authenticity of electronically issued documents. A Unique Document Identification Number (UDIN) is embossed at the top-right corner for all electronically issued documents. No specific website login credentials are required for verification of the UDIN. On entering the UDIN, the complete electronic document shall be available for download. For verification of authenticity of a paper copy of any document, the details may be compared with the electronic copy downloaded vide the UDIN.
Launch of Steel Import Monitoring System 2.0 (25 Jul)
The Ministry of Steel has launched version 2.0 of the Steel Import Monitoring System with effect from 25th July 2024. The current version will be discontinued with immediate effect. All the importers are required to file their SIMS applications after 2:00 pm on 25th July 2024 through the SIMS 2.0 portal (https://sims.steel.gov.in).
Amendment to the Handbook of Procedures with reference to the EPCG Scheme (25 Jul)
In order to reduce the compliance burden and to enhance ease of doing business, the Directorate General of Foreign Trade has made the following amendments to the Handbook of Procedures with reference to the Export Promotion of Capital Goods Scheme:
- Extended time upto the valid Export Obligation period may be allowed for submission of the Chartered Engineer Certificate, on the payment of a composition fee of Rs. 10,000 per year.
- The provision that installation certificate must be submitted within a period of three years from the date of import of spares has been deleted.
- The composition fee applicable for any request for extension of Export Obligation period has been prescribed, with reference to slabs based on duty saved under the EPCG license.
For more details, the Public Notice issued by DGFT may be referred.
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