Frequently Asked Questions
Find clear answers to common questions about our compliance services, registration processes, and corporate advisory.
The e-BRC is an electronic certificate issued by banks, confirming that export payment has been received in foreign currency. It is important because it serves as official proof of realization, which is mandatory for claiming export incentives and fulfilling obligations under DGFT schemes. Without e-BRC, exporters may face rejection of benefits and compliance issues.
Once the exporter receives payment, the Authorized Dealer bank verifies the transaction and uploads the e-BRC, electronically to the DGFT system. The certificate is then automatically reflected in the exporter’s DGFT account linked with their IEC, usually within a few working days, depending on the bank’s processing timeline.
If the e-BRC is not visible or contains incorrect details such as wrong amount or shipping bill number, the exporter must immediately contact their bank. Only the bank has the authority to correct, cancel, or re-upload the e-BRC. Timely correction is important to avoid delays in claiming benefits or completing compliance requirements.
Yes, a single e-BRC can cover multiple shipping bills if one payment is received for several exports. The exporter can map the same e-BRC accordingly on the DGFT portal and use it for various purposes such as incentive claims, license redemption, or compliance filings, depending on eligibility.
It is a legal process initiated by DGFT when a violation of the Foreign Trade Policy or license conditions is suspected. The process starts with a Show Cause Notice and ends with an adjudication order, after reviewing your reply and conducting a hearing. The authority may impose penalties, issue warnings or close the case based on the merits.
Responding to an SCN is crucial because it gives you an opportunity to present your side of the case. A well-prepared reply can clarify misunderstandings, provide evidence of compliance, and prevent or reduce penalties. Ignoring the notice can result in an adverse order without your input.
Yes, penalties can often be reduced or avoided if you provide valid explanations, proper documentation, and strong legal arguments. Authorities consider factors like intent, nature of violation, and supporting evidence before deciding penalties.
During the hearing, the adjudicating officer reviews your application and may raise queries regarding the information and documents submitted. Proper representation ensures that your responses are clear, legally sound, and aligned with DGFT provisions, improving the chances of a favorable outcome.
Under the Directorate General of Foreign Trade EPCG scheme, businesses can import capital goods, such as machinery, equipment, spares, tools, and software, required for their in-house production or services delivery. These goods must directly contribute to export activities. In some cases, second-hand machinery is also allowed, subject to conditions.
Export obligation is generally 6 times the duty saved amount on imported capital goods. For example, if ₹10 lakh duty is saved, EO becomes ₹60 lakh. This must be fulfilled within 6 years, ensuring businesses have sufficient time to generate exports
Yes, startups and new businesses can apply for EPCG without prior export history. However, they must demonstrate a clear export plan and the capacity to meet export obligations. Proper planning is important to avoid future compliance issues.
Yes, EPCG is available for service sectors such as hotels, hospitals & logistics companies. Instead of physical exports, they can earn foreign exchange through services to fulfill export obligations. This makes the scheme versatile across industries.
If EO is not met, the business must refund the proportionate duty saved along with interest. The DGFT may allow extensions or partial relief in certain cases. However, non-compliance can lead to financial and legal consequences.
RoSCTL is an export incentive scheme that refunds unrebated taxes on exported goods, mainly for garments and textile products. It is available to exporters holding a valid IEC and dealing in notified product categories. The scheme is designed to improve export competitiveness by reducing hidden costs
Benefits are issued in the form of electronic duty credit scrips through the DGFT portal. These scrips can be used to pay customs duties on imports, making them financially valuable. Additionally, they are transferable, allowing exporters to sell them in the market.
No, the scheme is currently limited to specific sectors, mainly ready-made garments and made-up textile articles. Eligibility depends on HSN code classification notified by the Government. Exporters must verify whether their products fall under the covered categories before applying
Yes, RoSCTL scrips are freely transferable and can be sold to other importers in the market. This provides an opportunity for exporters to convert incentives into immediate cash flow. It also enhances the overall liquidity position of exporting businesses.
If the exporter fails to receive payment within the prescribed time, the benefit claimed under RoSCTL will be revoked. In such cases, the exporter is required to refund the incentive along with applicable interest. Therefore, timely realization of export proceeds is crucial for compliance.
MIES is a Government-backed initiative by the Directorate General of Foreign Trade, which provides exporters with access to detailed market intelligence and trade statistics. It helps businesses analyze global demand, pricing trends, and export opportunities, for better decision-making.
Any exporter, manufacturer, or exim businesses, planning to enter international markets can benefit from MIES. It is particularly useful for MSMEs and new exporters who need reliable data to compete globally without high research costs.