The government has recovered about Rs 852 crore under the amnesty scheme for exporters, allowing them to settle defaults in export obligations. Six thousand seven hundred five applications were filed under the scheme, and the recovered amount is expected to increase further.

Several small exporters have requested an extension of the scheme for a one-time settlement of export obligation defaults until September. The new foreign trade policy (FTP) announced the scheme for exporters to settle defaults in export obligations.

India’s merchandise exports rose by 1% to USD 34.99 billion in April, while the trade deficit widened to a four-month high of USD 19.1 billion. Imports increased by 10.25% to USD 54.09 billion in the same month, mainly due to a significant jump in gold imports.

The government introduced the special one-time Amnesty Scheme to address default on export obligations in line with the “Vivad se Vishwas” initiative. The EPCG scheme aims to facilitate the import of capital goods to enhance India’s export competitiveness. At the same time, the advance authorisation allows duty-free import of inputs incorporated in export products.

The Indian government has a program called the Export Promotion Capital Goods (EPCG) scheme. This program provides financial assistance and incentives to exporters, specifically for machinery, its parts, and similar products used in manufacturing goods.

Under the EPCG scheme, exporters can import capital goods, including spares, for pre-production, production, and post-production at zero customs duty. This means they can duty-free import plants, machinery, accessories, and equipment. However, second-hand capital goods are not eligible for duty-free import under this scheme.

Exporters who avail themselves of benefits under these schemes must fulfil certain export obligations, and failure to do so attracts penal provisions.