The Directorate General of Foreign Trade (DGFT) has announced changes for simplification of the Export Promotion Capital Goods (EPCG) scheme making it easier for exporters to comply with regulations and reducing the time and effort required to meet requirements, per the government.

The scheme, which allows import of capital goods for pre-production, production and post-production at zero customs duty against an obligation to export, will now provide exporters an extended period to submit installation certificates for imported capital goods, reducing pressure on businesses to meet timelines.

Additionally, a simplified and reduced composition fee structure for extending the export obligation (EO) period has been introduced to minimise manual intervention, streamline compliance and speed up service delivery, according to a statement issued by the Commerce Department on Friday.

“These changes align with the commitment of the Government to create a more business-friendly environment and improving India’s manufacturing competitiveness,” the statement said.

It was also decided to that Policy Relaxation Committee (PRC) decisions regarding export obligation extensions and regularisation of exports will be implemented with a levy of uniform composition fee making it easier to implement through the system.

“These updates make it easier for exporters to comply with regulations, reducing the time and effort required to meet DGFT requirements. By expanding automated rule-based processes, DGFT aims to reduce human intervention, mitigate risks and improve overall efficiency in trade facilitation,” the release pointed out.

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