REGULATORY · MARKET STRUCTURE · INDIA
India relaxes EPCG export obligations
Change
India granted relaxations to help exporters fulfil export obligations under export promotion schemes amid disruptions to shipping routes and global supply chains.
Why it matters
The Directorate General of Foreign Trade issued the relaxations on Saturday. The measure is linked to geopolitical developments affecting international shipping routes and global supply chains. It is tied to challenges in shipping goods to West Asia due to ongoing conflict in the region. Under the EPCG scheme, domestic firms can import machines duty-free if they meet specified export obligations. The relaxation is stated to be in addition to an existing foreign trade policy facility available upon payment of composition fees.
Implications
- • Export-obligation compliance under EPCG can be managed using the new relaxations during shipping-route and supply-chain disruptions.
- • The foreign trade policy option to address obligations via composition fees remains available alongside the relaxations.
Who is affected
- • Exporters using EPCG duty-free capital-goods imports
- • Trade compliance teams managing export-obligation fulfilment
- • Importers of machinery under export promotion schemes
Source
Topics
World & Politics Policy & Regulation Trade & Tariffs Law & Public Safety Compliance