DGFT simplifies IEC provisions under the Foreign Trade Policy
The Dollar Business Bureau
Directorate General of Foreign Trade (DGFT) on Wednesday amended IEC provisions under the Foreign Trade Policy 2015-20, related to jurisdictions of IEC transfer, applications and adjustment of fees.
In its notification No.54/(2015-2020), DGFT informed, “When an IEC holder seeks modification/change of Branch Office/Head Office/Registered Office address in its IEC and which involves a shift in its jurisdictional RA, a request to that effect will have to be made to RA concerned under whose jurisdiction the applicant exists.”
In the earlier provision, the request to that effect will have to be made to the new RA to whose jurisdiction the applicant is shifting its Office.
“On the basis of this request, the RA (custodian of the IEC file till now) will process such requests and amend IEC, if found appropriate, under intimation to the RA under whose jurisdiction the applicant wants transfer. The new RA shall allow the person in its new address to carry out necessary functions and also apply for eligible benefits as per FTP,” it added.
As per the revised provision, “Applicants are required to pay fees of Rs.500 for IEC application. If the application is rejected, applicants shall be able to rectify the grounds on which previous application was rejected, without paying any further fees.”
Earlier, if an online IEC application was once rejected, the applicant had to apply afresh.
With regards to adjustment of fee, the new provision said, “In cases, where a new Advance Authorisation, EPCG and Duty Credit Scrip is issued by RA in lieu of the earlier Authorisation (which has been cancelled by RA, on the request of the firm, on account of non-registration at the Customs Port), or in case the RA suggests the firm to file application under correct scheme the application fees paid in the earlier Authorisation will be adjusted by the RA for the new Authorisation.
However, a minimum application fee of Rs.200 shall be paid for the new Authorisation. Head of Office of concerned RA while issuing Authorisations under this provision shall ensure proper linkage with the earlier cancelled Authorisation, it added.