Dated 4th March, 2019

 Discontinuation of physical copy of Advance EPCG Authorization with effect from 01.03.2019

Discontinuation of physical copy of Advance/ EPCG Authorization with effect from 01.03.2019


Backdrop

At present Advance/Export Promotion Capital Goods (EPCG) Authorisations are issued in hard copy on security paper. In order to improve ease of doing business and online transactions, DGFT has decided to discontinue issue of physical copy of the above mentioned authorisations issued from 01.03.2019 onwards, for EDI ports.1 & 2

No more hard copies of the authorisations, where port of registration is an EDI port

No physical copies of Advance / EPCG Authorisations on security paper will be issued on or after 01.03.2019 by Regional Authorities (RA) of DGFT, in respect of EDI ports. Please note that in case the port of registration is non-EDI one then, existing system of printing of Authorisation on security paper will continue.

Online availability of the authorisations and its legal recognition

On application being approved by RA, the applicant will be informed via mail & SMS and print out (also one can save as PDF) of the same can be taken from DGFT’s website (www.dgft.gov.in). Further, on the basis of the above PDF copy of the Authorisation, applicant can approach the concerned Customs Authority, at the registered EDI port, for execution of Bank Guarantee (BG) / Letter of Undertaking (LUT), as the case may be. Also note that only the latest version of the Authorisation will be available on the website, exporters should print / save the Authorisation so issued / amended on an immediate basis.

Electronic transmission of data on DGFT / Customs server within specified period to avoid unnecessary delay

RAs of DGFT will now transmit the data, relating to Advance / EPCG Authorisations issued, to DGFT server at the end of each working day and amendments made will be updated in T+2 working days [where T is the earlier transmission date for the Authorisation]. The same shall also continue to be transmitted electronically by DGFT to Customs server. Thus, the details of the said authorisations would be visible in Indian Customs EDI System (ICES) to all officers involved in import / export cycle.

Further, on request towards issue of Invalidation Letter / Advance Release Order (ARO) [in cases where applicant is intending to procure goods from domestic sources], RA shall amend the Authorisation and update the same on DGFT/Customs server in T+2 working days [where T is the earlier transmission date for the Authorisation].

Manual procedure done away towards request for issuance of Invalidation Letter / ARO

As from 01.03.2019 onwards details of invalidations / ARO shall be electronically transmitted to Customs server, the manual procedure for the same as mentioned in Para 3 of Board’s Instruction F.No.605/30/2015-DBK dated 28.09.2016 stands withdrawn.

Debits made electronically in ICES shall suffice

At the time of clearance, debits made electronically in ICES shall suffice for the purpose of verification by the appropriate officer. In other words, no physical debits will be required on copy of the authorisation generated by authorisation holder from DGFT’s website.

No TRA facility from EDI ports to non-EDI ports

No TRA (Transfer Release Advice) facility under such Advance / EPCG Authorisations issued from 01.03.2019 onwards will be available from EDI ports to non-EDI ports. Consequently, such electronically issued authorizations for EDI ports cannot be used for making imports at non-EDI ports.

1Policy Circular No. 19/2015-2020 dated 14.02.2019

2 Circular No. 07/2019-Customs dated 21.02.2019


Discontinuation of physical copy of Advance EPCG Authorization with effect from 01.03.2019

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Discontinuation of physical copy of Advance EPCG Authorization with effect from 01.03.2019

Discontinuation of physical copy of Advance EPCG Authorization with effect from 01.03.2019
Founder Member

Bhaskar Thakkar

Chief Executive officer

BT Associates, India

thakkar@btassociate.com

Twenty years of exprience in tax practice, specialist in structuring & planing and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.