The Directorate General of Foreign Trade (DGFT) has reduced the compliance requirements on the fulfilment of an export obligation, which aims to increase the ease of doing business. The DGFT has amended chapter 5 of the procedure handbook on the export promotion capital goods scheme.
Under the recent change in compliance obligations, an authorisation holder must now submit a fulfilment of export obligation report on the expiry of the first block period of four years. Afterwards, they must submit the report continuously till the valid export obligation has expired.
Before the change, this report had to be submitted by 30 June annually.
Report submissions remain online. However, the documents to be submitted with the report have changed. Now, the shipping bill, or invoice number, or bill export, or the foreign inward remittance certificate number along with its date must be submitted. A chartered accountant, or cost accountant, or company secretary – where they particularly provide the fulfilment of specific and average export obligations – must certify the report.
The previous requirement of submitting the shipping bill, GST invoice number, export date and description of service/product has been removed.
The previous regularisation fee in case of a delayed submission has also been excluded in the revised provision.