CBIC issued Circular on Amnesty scheme for one time settlement of default in export obligation by Advance and EPCG authorization holders

CBIC has issued Circular No. 11/2023-Customs dated May 17, 2023 pertaining to Advance and Export Promotion Capital Goods (EPCG) authorization holders. This circular is based on Notification No.32/2023-Customs, dated April 26, 2023, which amends 13 Customs notifications related to the Advance Authorization (AA) and EPCG Schemes.
The amendment is in accordance with Public Notice No. 02, issued by the DGFT on April 01, 2023. The DGFT’s public notice provides a procedure for regularization of bona fide defaults in meeting export obligations (EO), allowing authorization holders to settle pending cases by paying applicable Customs duty corresponding to the shortfall in EO. The interest payable on such duties is capped at a maximum of 100% as specified in the April 01, 2023 Public Notice. However, no interest is payable on the Additional Customs Duty and Special Additional Customs Duty.
To avail this procedure, authorization holders must complete the payment process before September 30, 2023. It’s important to note that this scheme does not cover cases under investigation or adjudication involving fraud, mis-declaration, or unauthorized diversion of materials or capital goods. Additionally, authorization holders cannot claim CENVAT Credit or Refund on duties paid under this scheme, except for cases involving calculation mistakes, which will be dealt with on merit.
The Notification No.32/2023-Customs makes it clear that when duty is paid to regularize a default in export obligation as per the DGFT’s Public Notice, the interest payable by the importer should be as specified in the April 01, 2023 Public Notice. No other changes are involved in the amendment.
The circular instructs the Principal Commissioners/Commissioners to ensure that exporters seeking to pay duty are registered with the DGFT as per the Public Notice dated April 02, 2023. They are responsible for monitoring and tracking these cases under the scheme to ensure efficient handling and timely closure of old cases of bona fide EO defaults. Suitable mechanisms should be put in place and closely supervised by the Principal Commissioners/Commissioners to facilitate this process.
It is recommended to disseminate this circular to all concerned through standing orders, instructions, or trade notices. Any difficulties encountered should be promptly reported to the Board.