Foreign Trade Policy 2023: New Amnesty Scheme for EODC Defaults

The Ministry of Commerce has introduced a strategic window for exporters via a new Amnesty Scheme within the Foreign Trade Policy. This initiative is designed to help manufacturers and merchant exporters who have failed to fulfill their Export Obligations (EO) under the Advance Authorization and Export Promotion Capital Goods (EPCG) schemes. Instead of facing crippling legal action and high interest rates, businesses can now regularize their cases by paying a capped amount of interest. This move by the Directorate General of Foreign Trade (DGFT) aims to clear long-pending litigation and allow SMEs to restart their export business with a clean slate. The scheme allows for the regularization of defaults on payment of all customs duties exempted, in proportion to the unfulfilled export obligation. ## Key points for manufacturers As established under the DGFT Foreign Trade Policy 2023 framework, the interest is typically capped at 100% of the exempted duties, providing a massive relief from the standard 15-18% compounded interest usually charged. Exporters must register through the DGFT online portal and file their applications under the specific 'Amnesty' tab. It is vital to note that this is a time-bound opportunity; if the Export Obligation Discharge Certificate (EODC) is not obtained through this route, firms risk being placed on the Denied Entity List (DEL), which halts all future import-export benefits.