DGFT vide Public Notice No. 22/2023 dated 13.07.2023 has provided relaxation for delay in submission of installation certificate w.r.t. EPCG authorisations issued under FTP 2009-14 and FTP 2015-2020 (extended upto 31.03.2023).
Under the EPCG Scheme, authorization holders must submit installation certificates confirming the installation of capital goods within a specific time frame as per applicable Foreign Trade Policy.
Time limit for submission of installation certificate under FTP 2015-2020
As per Para 5.04 of Hand book of Procedures (HBP) 2015-2020, EPCG Authorization holder is required to produce an installation certificate confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s), from the jurisdictional Customs authority or an independent Chartered Engineer (at the option of the authorisation holder), within six months from date of completion of import, to the concerned Regional Authority (RA).
However, the RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a composition fee of ₹ 5000/-.
Relaxation provided by DGFT
In regard to EPCG licenses issued under FTP 2009-14 and FTP 2015-2020, DGFT with a view to enhance ease of doing business has provided relaxation vide Public Notice No. 22/2023 dated 13.07.2023 by allowing the submission of installation certificates required under EPCG Scheme, upto 31.12.2023 on payment of a late fee of Rs. 10,000/- per authorization.
Such relaxation would be allowed only on furnishing of bonafide reasons by the authorisation holder for delay in submission of the installation certificate to the concerned Regional Authority (RA) and subject to the condition that such EPCG authorization should not be under any investigation or adjudication by RA / Customs authority/ any other investigating agency.
EPCG Authorisation holders are requested to avail the relaxation provided by DGFT and get their Licenses under EPCG Scheme regularised before 31.12.2023.
