Lockdown Measures-COVID-19- By DGFT

RELIEF/EXTENSION TO VARIOUS STAKEHOLDERS DURING LOCKDOWN UNDER COVID-19 PANDEMIC BY DGFT 

IN VIEW OF GRANTING RELIEF/EXTENSION TO VARIOUS STAKEHOLDERS UNDER COVID-19 PANDEMIC DGFT HAS ISSUED VARIOUS NOTIFICATIONS, TRADE NOTICES, AND PUBLIC NOTICES TO ADDRESS RELIEF / EXTENSION OF VALIDITY OF VARIOUS SCHEMES AND APPLICABILITY OF FOREIGN TRADE POLICY BEYOND 31 MARCH 2020. 

IN VIEW OF THE ABOVE, DEPARTMENT OF COMMERCE-DIRECTORATE GENERAL OF FOREIGN TRADE, NEW DELHI, GOVERNMENT OF INDIA ISSUED THE NOTIFICATION NO. 57/2015-2020-DGFT DATED: 31ST MARCH, 2020 TO EXTEND THE VALIDITY OF THE FOREIGN TRADE POLICY 2015-2020 TILL 31.03.2021. ALSO, SOME OTHER CHANGES HAS BEEN MADE LIKE EXTENDING THE DATE OF EXEMPTIONS BY ONE YEAR AND EXTENDING VALIDITY OF DFIA AND EPCG AUTHORIZATIONS FOR IMPORT PURPOSES. THE CONTENTS OF THE NOTIFICATION IS REPRODUCED HEREIN BELOW FOR READY REFERENCE. 

 

  1. Foreign Trade Policy: S.O. 1230(E).—In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with paragraph 1.02 of the Foreign Trade Policy (FTP) 2015-2020, as amended, the Central Government hereby makes, with immediate effect, the following amendments in the FTP 2015-2020:
  2. In para 1.01, the phrase “shall remain in force up to 31st March 2020 unless otherwise specified is substituted by the phrase “shall remain in force up to 31st March 2021 unless otherwise specified.”
  3. The following shall be added at the end of para 3.08(a):

“However, the service categories eligible under the scheme and the rates of reward on such services as rendered w.e.f. 1st April 2019 to 31“March 2020 shall be notified separately in Appendix 3 X. For the services rendered w.e.f. 1st April 2020, a decision on continuation of the scheme will be taken subsequently and notified accordingly.” 

  1. In para 4.14, the date “31.03.2020” as appearing in the last line is substituted by “31.03.2021”.
  2. In para 4.29(viii), after the first sentence, the following is inserted:

“However, for all DFIAs (including transferable DFIAs), where the validity for import is expiring between 01.02.2020 and 31.07.2020, the validity stands automatically extended by six months from the date of expiry.” 

  1. In para 5.01(a), the date “31.03.2020” as appearing in the second sentence is substituted by “31.03.2021”.
  2. In Para 5.01(c), after the second sentence, the following sentence is inserted:

“However, in case the validity period for import expires during 1st February 2020 to 31st July 2020, the validity stands automatically extended by further 6 months from the date of such expiry.” 

  1. In para 6.01(d) (ii), the date “31.03.2020” as appearing in the last line is substituted by “31.03.2021”.

Effect of this Notification: The existing Foreign Trade Policy 2015-2020 which is valid up to 31.3.2020 is extended up to 31.03.2021. Various other changes are also made extending the date of exemptions by one year and extending the validity of DFIA and EPCG Authorizations for import purposes 

 

  1. In the Handbook of Procedures (HBP), 2015-20:
  2. In para 1.01, the phrase “shall remain in force until 31st March 2020” is substituted by the phrase “shall remain in force until 31st March 2021.”
  3. In para 2.54(d) (v) (ii), the date “31st March 2020” is substituted by “30th September 2020” and the date “1st April 2020” is substituted by “1st October 2020”.
  4. In para 2.55(d), the following sentence is added at the end:

“However, any recognition which has extended validity up to 31st March 2020 or original validity up to 29th June 2020, would deem to be valid up to 30th June 2020.” 

  1. The following sentence is added at the end of para 3.15(a):

“However, with respect to para 3.15(a)(i) above, for the shipping bills where the Let Export (LEO) date falls during the period 01.02.2019 to 31.05.2019, applications may be filed within a period of 15 months instead of 12 months.” 

  1. The following sentence is added at the end of para 3.15(b):

“However, the last date for filing SEIS applications for FY 18-19 shall be 31.12.2020.” 

  1. The following phrase is added after the word ‘filed’ appearing at the end of para 3.20(a):

or 31.03.2021, whichever is later.” 

  1. In para 4.12(vi), the date “31.03.2020”, as appearing in the first sentence is substituted by “31.03.2021.”
  2. The following sub-para is added after the para 4.41(d):

“(e) For all Advance Authorisations where the validity for import is expiring between 01.02.2020 and 31.07.2020, the validity stands automatically extended by six months from the date of expiry.  No separate amendment/endorsement is required on the authorizations. The option to avail further validity extensions under this para would remain available for these authorizations as per eligibility.” 

  1. The following sub-para is added after para 4.42(h):

” (i) For all Advance Authorisations where the Export Obligation period is expiring between 01.02.2020 and 31.07.2020, the Export Obligation period stands automatically extended by six months from the date of expiry. No separate application with composition fee, amendment or endorsement is required for this purpose. The option to avail further validity extensions under this para beyond this period would remain available for these authorizations as per eligibility.” 

  1. The following sub-para is added after para 4.59(e):

“(f) For the Replenishment Authorisation applications where the last date of filing the application falls between 01.02.2020 and 31.07.2020, the last date stands extended by six months.” 

  1. The following sentence is added at the end of paras 4.75(c) and 4.77(c):

“For those cases where the last date of exports under this para falls between 

01.02.2020 and 31.07.2020, the last date stands extended by six months.” 

  1. The following is added at the end of Para 4.80:

“Note: In all those cases where the last date, calculated as per the durations mentioned under various sub-paras of para 4.80 above, is expiring between 01.02.2020 and 31.07.2020, the last date stands extended by six months. This will include the extension in time for replenishment, booking with nominated agencies, and time allowed for re-import.  However, the relaxation in the repatriation of sale proceeds period would be equal to the period allowed plus six months, or as subject to RBI guidelines, whichever is less.” 

  1. The following para is added after para 4.85:

“4.85 A 

For those cases, where the last date for exports/ replenishment/ imports/ drawl of the precious metal as calculated under various sub-paras of para 4.82, 4.83, 4.84, and para 4.85, expires between 01.02.2020 and 31.07.2020, such last date stands extended by six months. 

However, relaxation in the period for repatriation/forex realization would be equal to the period as allowed plus six months, or as per RBI guidelines, whichever is less.” 

  1. In para 4.95(k) (a), the last date for filing online claims is amended to read as 31.12.2020 in place of 30.06.2020.
  2. In para 5.04(a), after the first sentence, the following sentence is inserted:

“However, in case the period of six months expires during 1st February 2020 to 31st July 2020, the period for submission of Installation Certificate is extended by further 6 months from the original due date.” 

  1. After para 5.14(d), the following sub-para is added:

“(e) However, for the authorizations covered under para 5.14 (a), (c) and 

(d), if the block-wise export obligation period expires during 1st February 2020 to 31st July 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry.” 

  1. After para 5.17(d), the following sub-para is added:

“(e) However, for the authorizations covered under para 5.17 (a), (b) and(c), if the export obligation period expires during 1st February 2020 to 31st July 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry.” 

In para 6.01(b)(ii), after the sentence “Further extension, if necessary, 

will be granted by the Board of Approval.”, the following sentence is inserted: 

“All such LOPs/LOIs whose original or extended validity expires on or after 1st March 2020, may be deemed to be valid up to 31st December 2020.” 

  1. In para 6.06(c)(ii), the following sentence is added at the end:

“In case the export obligation period expires during 18t March 2020 to 30th June 2020, it would deem to be valid up to 30th September 2020.” 

  1. In para 7.05(a), the following sentence is inserted after sentence number

“In all such cases where the above dates fall on or after 1st March 2020, the date of filing of applications for refund of TED/Drawback may be deemed to be extended up to 30th September 2020.” 

  1. In para 7A.01(d), the following sentence is added at the end: “Application for refund of such claims for the quarter ending 31st March 2019 and 30th June 2019 may be filed up to 30th September 2020.”
  2. In para 9.02, the following sentence is added at the end:

“The last date of submission of application, for the purpose of late cut, would be taken as that extended vide Public Notice No. 67/2015-20 dated 31st March 2020,” 

 

  1. In the Appendices & Aayat Niryat Forms:

(i) In clause 6 of Appendix-6E, the following sentence is added at the end: 

“QPR for quarters ending March 2020 and June 2020 and APR for Financial year ending on 31.03.2020 can be filed up to 30th September 2020.” 

(ii) In clause 6(A) of Appendix 6E, the following sentence is added at the end: 

“Monthly reports for months ending February 2020 to June 2020 can be filed up to 31st July 2020.” 

(iii) In clause (viii) of Appendix 6H, the following sentence is added at the end: 

“However, for the claims of quarters ending 30th September and 31st December 2019, the last date of filing applications for refund of CST is extended up to 30th September 2020.” 

(iv) Notification No. 17/3/2018-EP (Agri.IV) dated 17.03.2020 of the Department of Commerce, extending the validity of the TMA scheme up to 31.03.2021 is added to Appendix-7(A) A. 

Effect of this Public Notice: Validity of the existing Hand Book of Procedures, 2015-20 is extended up to 31st March 2021. Various other amendments are also made providing extension in the export obligation period in case of Advance and EPCG Authorisations, extension in the validity period of status certificates, extension in the dates of filing various applications and returns, etc 

  1. SUMMARY OF IMPORTANT UPDATES ON THE EXTENSIONS / RELIEFS GIVEN UNDER NOTIFICATION NO. 57/2015-2020-DGFT DATED: 31ST MARCH, 2020 AND PUBLIC NOTICE NO.-67/2015-2020 DATED: 31ST MARCH, 2020, FOR YOUR READY REFERENCE:
  1. The Handbook of Procedure 2015-2020 (HBP) and FTP 2015-2020 has been extended FROM 31.03.2020 to 31.03.2021. It means the continuation of all the Export Promotion Schemes (except SEIS) in the FTP like MEIS, DFIA, Advance Authorisation, EPCG, Deemed Export, etc. till 31 March 2021. 

 

  1. SEIS benefit: rates of benefit for 2019-2020 will be notified separately and decision on continuation of the scheme for services rendered beyond 1 April 2020 will be notified separately. 

 

  1. Similarly, the validity period of the Status Holder Certificates is also extended till 30.06.2020. This will enable the Status Holders to continue to avail of the specified facilities/benefits. 

 

  1. DFIA/ EPCG/ Advance Authorisations/ authorization in respect of Gem & Jewellery: where the validity of authorization is expiring between 1st February to 31 July 2020, the period of validity is automatically extended by six months from the date of expiry. 

 

  1. Exemption from payment of IGST and Compensation Cess on the imports made under Advance/EPCG Authorisations and by EOUs etc. has been extended up to 31.03.2021. 

 

  1. Applicability of import of un-shredded scrap at designation ports without Radiation Portal Monitors and Container Scanner extended till 30 September 2020; 

 

  1. The scheme for providing “Transport Marketing Assistance on the specified Agricultural Products” is further extended for one year (i.e. Extended till 31 March 2021). 

 

  1. Transport and Marketing Assistance Application: For the quarter ending 31st March 2019, the last date for filing application extended from 30 June 2020 to 30 September 2020. 

 

  1. MEIS shipment with Let Export Order (LEO) date falling between 1st February to 31st May 2019, the applications can be filed within 15 months as against the normal time limit of 12 months from LEO date. 

 

  1. SEIS application for FY 2018-19: the last date for filing application is extended till 31st December 2020. 

 

  1. LOP/LOI issued to EOU/EHTP/STP/BTP expiring on or after 1st March 2020 is deemed to be valid till 31st December 2020. 

 

  1. TED / Drawback (in case of deemed exports): Where dates fall after 1st March 2020, date of filing applications extended up to 30th September 2020. 

 

  1. Relief for applications filed for receiving the benefit under FTP shall be considered as extended up to dates as mentioned in Public Notice no. 67/2015-20. 

 

  1. Retrospective Issuance of Certificates of Origin under India’s of trading Agreements: As per Trade Notice No. 59/2019-20 dated 28.03.2020 On Account of Lockdown, Indian Agencies authorized to issue a certificate of origin under India’s Free Trade Agreements (FTA), Comprehensive Economic Operations Agreements (CECA), Comprehensive Economic Partnership Agreement (CEPA) and Preferential Trade Agreement (PTA) are temporarily closed and unable to issue the Certificate of Origin. In view of such exceptional circumstances, the certificates would be issued retrospectively by the concerned Indian agencies after open their offices. Also, India would stand ready to honor its preferential trade agreement import subject to the respective governments making a formal request or putting up a notice in this regard. 

 

  1. Extension of validity of Registration cum Membership Certificate (RCMC) beyond 31st March 2020: As per Trade Notice no/- 60/2019-20 dated 31.03.2020 It has been decided by the Regional Authorities (RAs), DGFT will not insist RCMC in a case where the same has been expired on before 31.03.2020, for any incentive / Authorisations till 30.09.2020. Export Promotion Councils (EPCs) will collect Application fees for the year 2020-21 on the restoration of normalcy. 

By Professional Team 

LEGALLANDS LLP 

 

Leave your comment

Please enter your name.
Please enter comment.
 

Disclaimer

 

As per the rules of the Bar Council of India, we are not permitted to solicit work and advertise. By clicking “I agree” below, you acknowledge the following:

 

  • There has been no advertisement, personal communication, solicitation, invitation or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;

  • The user wishes to gain more information about us for his/her own information and use;

  • The information about us is provided to the user only on his/her specific request and any information obtained or materials downloaded from this website is completely at the user’s volition and any transmission, receipt or use of this site would not create any lawyer-client relationship.

The information provided under this website is solely available at your request for informational purposes only, should not be interpreted as soliciting or advertisement. We are not liable for any consequence of any action taken by the user relying on material/information provided under this website. In cases where the user has any legal issues, he/she in all cases must seek independent legal advice.