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An Overview of EPCG Committee
The EPCG Licence holder or exporter requests that the EPCG Committee loosen the policy. The EPCG Committee has the authority to loosen the policy against the EPCG licence or any conditions of the EPCG Scheme. The EPCG Committee may evaluate proposals for extra EOP extensions outside the existing policy guidelines, additional Revalidation, average export obligation easing, and so on. The EPCG committee evaluates each request individually and makes a decision. If the EPCG Committee rejects a case, the exporter may request a review of the previous decision. If the review request is likewise denied, the exporter is left with just one option: contact the PRC Committee. The decision of the PRC Committee will be final and binding.
The DGFT issued Trade Notice 05/2021-22 on May 19, 2021, announcing the launch of an online e-EPCG Committee module for receiving proposals for Policy/Procedure relaxations. Following that, the EPCG Committee will only accept requests for relaxation through its online system. It is not permitted to submit such applications manually. The entire application procedure, as well as the committee's conclusion, would take place online. For any questions or concerns, the Directorate would create online deficiency letters requesting any additional information, to which the exporter might answer online.
Objective of EPCG Committee
The EPCG Committee's goal is to pass such measures that have a negative impact on trade and contribute to genuine hardship in the public interest. The order may be in the form of an exemption, relaxation, or relief from any provision of the FTP or any procedure for the EPCG Licence holder/Exporter.
The EPCG Committee may take into account the following types of cases:
Case 1: EOP Extension / Total EOP Extension
In relation to the Zero Duty EPCG Scheme, if the exporter is unable to fulfil the EO within 6 years plus the extended period owing to buyer cancellation or any other reasonable reason. The exporter might then obtain another EOP extension for 6 months, one or two years.
The EPCG Committee may consider an EOP extension in this type of scenario. To decide such cases, the Committee may look at the percentage of EO completed in the initial plus extended EO period and then assess on a case-by-case basis if the exporter has experienced genuine hardship.
Case 2: Condonation request for Blockwise extension of EOP
If the exporter is unable to complete at least 50% of the EO in the first Block, the EPCG holder may apply to the RA DGFT for a Blockwise EO extension. This application must be submitted within 30 days of the completion of the Block.
However, if the exporter fails to do so, the RAs are unable to evaluate such petitions. The exporter may then request that the EPCG Committee excuse the error of late filing for the Blockwise extension of EOP.
If no online application for 1st block regularisation is made, the exporter may be required to pay a composition fee on duty saved amounts in proportion to the shortage.
Case 3: Request for Excusal for a Delay in Submitting the Installation Certificate
The installation certificate must be submitted to DGFT within 6 months of the import date, according to EPCG scheme guidelines. If the exporter does not comply, the EPCG Committee may examine the request for a delay in submitting the installation certificate to RA.
Case 4: Exemption from maintenance of Average Export Performance
If an exporter completed their EO 100% within the specified time frame but was unable to complete their AEO 100%, the exporter may request an exemption from the maintenance of Average Export Performance if the EPCG Licence holder is experiencing genuine hardship.
Case 5: Regularisation of excess duty credit utilized
The authorization holder may request that excess duty credit be reinstated. Although the EPCG Committee may evaluate the request, the amount used shall not exceed 10% of the duty savings value specified in the subject EPCG authorization.
Case 6: Acceptance of installation certificate issued by Chartered Engineer instead of Central Excise Authority
A Central Excise authority Installation certificate was required for all EPCG licences issued prior to April 1, 2015. Such requests are denied by RA DGFT if the Exporter did not get this and instead obtained an Installation Certificate from an Independent Chartered Engineer. If the exporter failed to get an installation certificate from the relevant Central Excise Authority, the EPCG Committee may take the request of the Authorization holder into consideration and, in certain circumstances, provide a relaxation.
Case 7: Relaxation due to incorrect EPCG licence number stated on shipping bills.
If the exporter accidentally listed the incorrect licence number in several shipping bills, he may request a relaxation from the EPCG committee.
Case 8: Relaxation for Revalidation
The authorization holder may request a relaxation to extend the validity for capital goods import if the EPCG licence holder fails to import the machinery within the initial plus extended time.
What paperwork must be submitted with your application to the EPCG Committee?
- Importer -Exporter Code (IEC)
- Digital Signature Certificates (DSC) to apply online.
- Registration cum Membership Certificate (RCMC).
- Copy of EPCG Authorisations
- Application form with relevant fees.
- Justification Letter
- Necessary supporting documents to justify the claim showing genuine hardship.
How does one go about asking the EPCG Committee to relax a policy?
By completing the below-mentioned online procedure, EPCG licence holders and exporters can request a policy relaxation against EPCG Licence from the EPCG Committee.
- Go to DGFT website https://www.dgft.gov.in/
- Go to Services > EPCG >> Apply for EPCG Committee
- Login in by using username & password.
- Select ‘Application Type’ as Fresh application or Review Application
- Check Committee Type: Pre default value will be selected as ‘EPCG Committee. Keep as it is,
- After filling in the Applicant Details select the Personal Hearing Details.
- Then upload the EPCG Policy Relaxation Committee required documents.
- Make the payment.
- Click on Submit button.
- Notification of an application for an EPCG Policy Relaxation is sent to the applicant's Email ID and Mobile Number listed on their IEC.
- You can also check the status under the "Submitted Applications" tab.
Flowchart for the EPCG Committee Application Process
The holder of an EPCG Licence may submit an online request for a policy relaxation along with a justification for the request. All of these requests are dealt with at the DGFT Headquarters, and after the case has been accepted by the committee, the user may ask the relevant Regional Authority to take corrective action.
How can Afleo Consultants help you convince the EPCG Committee to relax its position against granting licences to EPCGs?
- In order to receive a policy relaxation against an EPCG Licence, we help you with the documentation and advise you on the documents that must be kept on hand.
- Assistance with the online application for the EPCG committee on the online Portal will be provided.
- coordination with the EPCG Committee, if the issuing authority has requested any additional explanation.
Frequently Asked Questions
Export Promotion Capital Goods
Policy relaxation / relief for EPCG License
Go to DGFT website https://www.dgft.gov.in/
and then click on Services > EPCG > Apply for EPCG Committee
If both addresses are listed in the IEC and RCMC and a new installation certificate is submitted within six months of the transfer, the EPCG Committee in DGFT may approve the transfer of capital goods from one unit of the company to another.
Notification of applications for EPCG Policy Relaxation is sent to the applicant's Email ID, registered with IEC, and mobile number.
In a single application, you can select any number of authorizations and scrips that are connected to a scheme and a cause.
Any authorized representative of the EPCG License holder can appear for the PH on given date and venue.
If you have already submitted your application and it is not "In Progress," you may request a review of it.
You are allowed to submit as many review applications as you like.
Note: Separate fees must be paid for each file in the review application.
You can withdraw policy relaxation application within 2 days of submission under my dashboard >>
submitted application >> type of scheme “EPCG” >> type of sub scheme “Apply for EPCG Committee”
>> Search >> Actions >> Withdraw application
If you feel one of the members should be present in-person to explain and elaborate on the EPCG
Policy relaxation request, then you may apply for the EPCG relaxation request with PH.
Note: Personal Hearing is not mandatory for the applicant