Frequently Asked Questions
Find clear answers to common questions about our compliance services, registration processes, and corporate advisory.
The export obligation period is usually defined in the authorization issued by DGFT and vary depending on policy provisions. In most cases, exporters are required to complete exports within a specific time frame (e.g., months), and extensions may be granted only under valid circumstances with proper justification.
No, diamonds imported under Imprest Authorization cannot be sold in the domestic market. They must strictly be used for manufacturing, processing, or value addition and then exported. Any diversion to the domestic market is treated as a violation of DGFT rules.
DFIA is a post-export authorization issued by the Directorate General of Foreign Trade that allows exporters to import inputs without paying customs duty. The exporter first completes the export of finished goods as per SION norms and then applies for DFIA to claim duty benefits on inputs used.
Any manufacturer, exporter or merchant exporter with a valid Import Export Code (IEC) can apply, provided the export product is covered under SION norms and all export documentation is properly maintained.
SION (Standard Input Output Norms) defines the quantity and type of inputs required to manufacture a specific export product. DFIA benefits are granted strictly based on these predefined norms.
Yes, DFIA becomes transferable after fulfillment of export obligation. Once transferable, it can be sold or used by any importer, making it a tradable instrument in the market.
DFIA generally has a validity period (commonly 12 months for imports), which may vary as per DGFT notifications. Imports must be completed within this time frame.
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 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 case and ask questions regarding the allegations 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 like machinery, equipment, spares, tools, and software required for production or service 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 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 like hotels, hospitals, and 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 pay the proportionate duty saved along with interest. DGFT allow extensions or partial relief in certain cases. However, non-compliance can lead to financial and legal consequences.