An Overview
The EPCG License holder or exporter requests a policy relaxation from the EPCG Committee. The EPCG Committee is authorized to grant relaxation of the policy against the EPCG license or any provisions under the EPCG Scheme. The EPCG Committee may consider requests for additional EOP extensions over and above the existing policy rules, additional Revalidation, relaxation in Average Export Obligation etc. The EPCG committee considers each request on a case to case basis and gives the decision. If any case is rejected by the EPCG Committee then the exporter can apply for a review of earlier decision. If the review request is also rejected then the exporter has only one option left i.e. to approach the PRC Committee. PRC Committee decision will be final and Binding.
The DGFT published Trade Notice 05/2021-22 dated May 19, 2021 regarding the introduction of an online e-EPCG Committee module for accepting requests for relaxations in Policy/Procedure. Thereafter, the EPCG Committee will only accept applications for relaxation through its online system. The manual submission of such applications is not permitted. The entire application process and communication of the committee's decision would be done online. For any query or concerns, the Directorate would generate online deficiency letters asking for any additional information required, and the exporter could respond online to the deficiency letters.
Objective of EPCG Committee
The objective of the EPCG Committee is for the public interest to pass such orders which impact adversely on trade and contribute to genuine hardship. The order may be in the form of exemption, relaxation, or relief to the EPCG License holder/Exporter from any provision of the FTP or any procedure.
In this video, practical examples and case studies are used to explain the types of situations that the EPCG Committee considers as well as the documents requirements and application process. Thus, everyone whose Redemption/EODC is stuck at RA DGFT due to some policy issues, as well as everyone whose case was denied by the EPCG Committee, should watch this entire video.
EPCG Committee may consider the following type of cases
Case 1: EOP Extension / Total EOP Extension
In relation to Zero Duty EPCG Scheme, If EO could not be fulfilled by the exporter in 6 years plus the extended period due to a cancellation by the buyer or for any other legitimate reason. Then the exporter can request a further Extension of EOP for 6 months or one or two years.
This type of case may be considered for an EOP extension by the EPCG Committee. To decide such cases, the Committee may observe the % of EO completed in the initial plus extended EO period, and then decide on a case to case basis, if the exporter has faced any genuine hardship.
Case 2: Condonation request for Blockwise extension of EOP
In case the exporter is unable to fulfil minimum 50% of the EO in the first Block, then the EPCG holder can apply to RA DGFT for Blockwise EO extension. This application should be made within 30 days of the Block completion.
But if the exporter failed to do this then the RAs are not able to consider such requests. Then the exporter may ask EPCG Committee to condone the mistake of late filing for the Block wise extension of EOP.
In such cases, the exporter may need to pay a composition fee on duty saved amounts in proportion to the shortfall if no online application is made for 1st block regularization.
Case 3: Condonation request for a delay in submission of Installation Certificate
As per EPCG scheme guidelines, the Installation certificate should be submitted to DGFT witihin 6 months of the Import date. However if the exporter fails to comply with this, then the EPCG Committee may consider the request for a delay in the submission of the installation certificate to RA.
Case 4: Exemption from maintenance of Average Export Performance
If the exporter made EO 100% within stimulated time but couldn’t fulfil their AEO 100% in this case exporter can request for exemption from maintenance of Average Export Performance, if any genuine hardship is faced by the EPCG License holder.
Case 5: Regularisation of excess duty credit utilized
The authorization holder can apply for regularisation of excess duty credit utilized. Although the EPCG Committee may consider the request, the amount utilized should not exceed 10% the amount of duty saved value mentioned in the subject EPCG authorisation.
Case 6: Acceptance of installation certificate issued by Chartered Engineer instead of Central Excise Authority
For all the EPCG licenses issued before 01.04.2015, Installation certificate from Central Excise authority was mandatory. If the Exporter has failed to obtain this and instead taken Installation Certificate from an Independent Chartered Engineer, then such requests are rejected by RA DGFT. The EPCG Committee may consider the request of the Authorization holder if the exporter failed to obtain an installation certificate from the jurisdictional Central Excise Authority and grant relaxation on a case to case basis.
Case 7: Relaxation for wrong mentioning of EPCG license no. on shipping bills.
If the exporter has inadvertently made an error and mentioned wrong License no. in some of the shipping bills, then he can apply to EPCG committee for relaxation of the same.
Case 8: Relaxation for Revalidation
If the EPCG license holder fails to import the machinery within initial plus extended time, then the authorisation holder can apply for relaxation for increasing the validity for import of capital goods.
What documents are required to file an application to the EPCG Committee?
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- Importer -Exporter Code (IEC)
- Digital Signature Certificates (DSC) to apply online.
- Registration cum Membership Certificate (RCMC).
- Copy of EPCG Authorisations
- Application form with relevant fees.
- Justification Letter
- Necessary supporting documents to justify the claim showing genuine hardship.
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What is the procedure for applying for Policy Relaxation to the EPCG Committee?
The EPCG license holders and exporters can request a policy relaxation against EPCG License to EPCG Committee by following the below-mentioned online procedure.
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- Go to DGFT website https://www.dgft.gov.in/
- Go to Services > EPCG >> Apply for EPCG Committee
- Login in by using username & password.
- Select ‘Application Type’ as Fresh application or Review Application
- Check Committee Type: Pre default value will be selected as ‘EPCG Committee. Keep as it is,
- After filling in the Applicant Details select the Personal Hearing Details.
- Then upload the EPCG Policy Relaxation Committee required documents.
- Make the payment.
- Click on Submit button.
- EPCG Policy Relaxation application notification goes on the Email ID and Mobile Number registered under the IEC of the applicant.
- You can also check the status under the "Submitted Applications" tab.
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EPCG Committee Application Procedure – Flowchart
The EPCG License holder can apply for the Policy Relaxation through an online portal with a reason and justification for the request for relaxation. All these requests are handled at the DGFT Headquarters and once the case has been approved by the committee, then the user can request the respective Regional Authority, to take corrective action.
[EPCG Committee -Online Application Procedure flowchart]
How can Afleo Consultants assist you to get policy relaxation against EPCG License from EPCG Committee?
- We assist you in the documentation and guide you about the document which has to be kept ready to get policy relaxation against EPCG License.
- Assistance would be given in the online application for applying for the EPCG committee on the online Portal.
- Coordination with issuing authority - EPCG Committee if any further clarification has been asked by them.
FAQ's
Export Promotion Capital Goods
Policy relaxation / relief for EPCG License
Go to DGFT website https://www.dgft.gov.in/
and then click on Services > EPCG > Apply for EPCG Committee
The transfer of Capital Goods from one unit of the company to their another unit may be allowed by EPCG Committee in DGFT subject to the condition that both the addresses are mentioned in IEC and RCMC and submission of fresh installation certificate is done within 6 months of such transfer.
EPCG Policy Relaxation application notification goes on Email ID and Mobile Number registered under IEC and the applicant.
You may enter any number of authorization/scrips related to a scheme and reason selected in the single application.
Any authorized representative of the EPCG License holder can appear for the PH on given date and venue.
You can apply for review of application if you had already submitted application and application status
is not “In Progress”.
You may apply any number of times for the review application.
Note: Fee needs to be paid for every file of review application separately.
You can withdraw policy relaxation application within 2 days of submission under my dashboard >>
submitted application >> type of scheme “EPCG” >> type of sub scheme “Apply for EPCG Committee”
>> Search >> Actions >> Withdraw application
If you feel one of the members should be present in-person to explain and elaborate on the EPCG
Policy relaxation request, then you may apply for the EPCG relaxation request with PH.
Note: Personal Hearing is not mandatory for the applicant
Why Afleo Consultants?
- We only have the goal of providing very reliable services with the most competitive cost to the exporters under one roof.
- Social Media Presence: We wish to get every opportunity to grow our relationships with our clients and for which we made our presence on each social networking sites to update them about the latest Notifications, Circulars, Amendment done in foreign trade policies.
- 24/7 Telephonic Service: We believe in offering better and faster services to our clients who can't afford to wait until the morning for a problem to be fixed we are just a phone call away, they just need to call or drop a mail and we try to reach them as soon as possible.
- We have a separate team for follow up with DGFT and have a great understanding of the working of DGFT office, which helps us in obtaining & Closing Advance licenses without delay.
Recent Updates
- DGFT Notification No. 61/2015−2020, Dated: 31st March 2021:
Import of specific items in Chapter 74 and Chapter 76 of ITC (HS) 2021 are subject to compulsory registration under Non – Ferrous Metal Import Monitoring System (NFMIMS).
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