IANS | 01 Mar, 2023
The Directorate General of Foreign Trade (DGFT) has notified amended
rules for implementing all PRC (Policy Relaxation Committee) decisions
regarding the levy of Composition Fee.
The DGFT has
extended the benefit of reduced Composition Fee for cases where it has
allowed an extension in EOP (Export Obligation Period) and/or
regularisation of exports already made.
As per the Ministry of
Commerce and Industry, the rationalisation 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 confusions.
Automating the process will
result in faster service delivery by reducing the need for manual
calculations and paperwork. This initiative aims to integrate a uniform
and transparent system for implementing all PRC decisions, including
past decisions related to levying Composition Fee in the case of
extending Export Obligation Period (EOP) and/or regularisation of
exports made under the Advance Authorisation Scheme.
The goal is to make doing business easier and reduce transaction costs, said the Ministry.
Calculation
simplification also contributes to the "Ease of Doing Business" mission
by reducing complexity and making the procedures relatively easy for
exporters.
The DGFT is working towards this goal by making the
Composition Fee calculation procedure smoother and easier to understand
for exporters.
