FTP - Option to close cases of default in Export Obligation
THE DGFT has provided an option for redemption/ regularisation of old cases of default in Export Obligation under (a) Duty Exemption Scheme (b) EPCG Scheme.
All pending cases of the default in meeting Export Obligation (EO) can be regularised by the authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty; but the interest component to be so paid shall not exceed the amount of customs duty payable for this default.
The customs duty could be paid either in cash or by way of debiting of any valid duty credit scrips issued under Chapter 3 of the Foreign Trade Policy. The interest component however, has to be paid in cash only.
Any authorisation holder choosing to avail this benefit must complete the process of payment on or before 31st March 2014.
Will the Customs Department agree? Will they issue a notification/circular?
DGFT Public Notice No. 22/( RE-2013)/ 2009-2014, Dated: August 12, 2013