Foreign Trade Policy: New Amnesty Scheme for Export Obligation Default

The Ministry of Commerce and Industry has extended a one-time relief measure for exporters who have failed to meet their Export Obligations (EO) under the Advance Authorization and Export Promotion Capital Goods (EPCG) schemes. This Amnesty Scheme allows firms to regularize their cases by paying all pending customs duties in proportion to the unfulfilled export obligation, with interest capped at 100% of such duties. As per DGFT Public Notice No. 2/2023, which remains the foundational framework for this relief, exporters can close long-pending disputes that have hindered their 'Status Holder' upgrades. ## Key points for SMEs Exporters should note that no CENVAT Credit or Duty Drawback can be claimed on the additional customs duties paid under this scheme. It provides a clean slate for MSMEs who faced logistics disruptions or market volatility in previous years. To benefit, firms must register on the DGFT website and submit their redemption applications before the prescribed deadline. This is a vital opportunity to clear legal hurdles and restore eligibility for future industrial subsidies and incentives without the fear of compounding penalties or prosecution.