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Govt eases export promotion scheme to cut transaction cost, promote automation
- The govt announced an extension for the submission of installation certificates for imported capital goods. It also introduced a simplified and reduced composition fee structure for extending the export obligation period, which will minimize manual intervention, and streamline compliance.
New Delhi: In a move to support exporters, the government on Friday announced an extension for the submission of installation certificates for imported capital goods.
This adjustment aims to alleviate the pressure on businesses, granting them more time to comply with the documentation requirements.
An installation certificate for imported capital goods is an official document that certifies the proper installation and operational status of imported machinery or equipment at a specified location, ensuring compliance with import regulations. This certificate must be submitted within six months of the completion of imports.
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In a statement, the commerce ministry said that the Directorate General of Foreign Trade (DGFT) has simplified the Export Promotion Capital Goods (EPCG) scheme, which will reduce transaction costs and promote automation to benefit exporters.
The ministry added that these changes reflect the government's commitment to fostering a more business-friendly environment and enhancing India's manufacturing competitiveness.
Additionally, a simplified and reduced composition fee structure for extending the export obligation (EO) period has been introduced, minimizing manual intervention, streamlining compliance, and expediting service delivery.
The export obligation period is the timeframe within which an importer must fulfill export commitments made under duty exemption or benefit schemes, such as the Export Promotion Capital Goods (EPCG) scheme. Failure to meet the obligation within this period can result in penalties or repayment of benefits.
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Furthermore, all Policy Relaxation Committee (PRC) decisions regarding export obligation extensions and the regularization of exports will now be implemented with a uniform composition fee, facilitating easier system implementation.
The commerce ministry further said that by expanding automated, rule-based processes, DGFT aims to reduce human intervention, mitigate risks, and improve overall trade facilitation efficiency.
The DGFT, an arm of the commerce ministry, has also roped in several e-marketplace players to help small businesses tap global markets under the government’s One District One Product (ODOP) programme.
Also Read: Govt to launch portal for non-tariff issues as agri exports dip 3%
The tie-up with e-commerce players was aimed at allowing buyers from international markets to place orders for unique domestic products using the online platform.
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Business NewsEconomyGovt eases export promotion scheme to cut transaction cost, promote automation
First Published:26 Jul 2024, 10:49 PM IST
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