New Delhi: The Directorate General of Foreign Trade (DGFT) said it is extending the benefit of reduced Composition Fee for cases where it has allowed an extension in EOP (Export Obligation Period) and regularization of exports already made.
This was notified vide Public Notice No. 59/2015-20 on February 28, 2023, by amending Para 4.42 of Handbook of Procedures (2015-20), it said.
The rationalization of Composition Fee calculations aids in automation and accelerated delivery of services by attempting to make the procedure simpler and more understandable. The revised Composition Fee model, which is based on a specific rate for different levels of the ‘CIF value of Authorisation,’ is less complicated and simpler to calculate. This will assist in streamlining the compliance process with minimal human intervention, reducing the risk of discrepancies and confusion, the DGFT stated.
Automating the process will result in faster service delivery by reducing the need for manual calculations and paperwork, it claimed. This initiative aims to integrate a uniform and transparent system for implementing all Policy Relaxation Committee (PRC) decisions, including past decisions related to levying Composition Fees in the case of extending Export Obligation Period (EOP) and/or regularization of exports made under the Advance Authorization Scheme. The goal is to make doing business easier and reduce transaction costs.
Calculation simplification also contributes to the “Ease of Doing Business” mission by reducing complexity and making the procedures relatively easy for exporters.
DGFT is working towards this goal by making the Composition Fee calculation procedure smoother and easier to understand for exporters. As it notified amended rules for implementing all PRC decisions regarding the levy of Composition Fees, this initiative started with Public Notice No. 52 dated 18.01.2023. These initiatives will eventually result in stronger trade facilitation and ease of doing business., the DGFT said.
– global bihari bureau
