Amnesty Scheme For Advance Authorization / EPCG: No Penalty For Export Obligation Defaults After Regularization

Exporters availing Advance Authorisation and Export Promotion Capital Goods ('EPCG') schemes are at times faced with challenges in fulfilling the export obligation. To aid such exporters, and to reduce the pending litigation on this account, Amnesty Scheme was introduced vide Public Notice No. 2/2023¹ by the Directorate General of Foreign Trade ('DGFT').

The Amnesty Scheme offered bona fide exporters a one-time opportunity to regularize default in export obligation under the Advance Authorization and EPCG schemes. This Scheme applied to authorizations issued under the Foreign Trade Policy 2004-2009 and 2009-2014. Under the Scheme, exporters could regularize their defaults by paying customs duty proportional to the unfulfilled export obligation. Additionally, the interest payable under the Scheme was capped at a maximum of 100% of the duties exempted on which interest is payable.