FTP Amnesty Scheme explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Amnesty Scheme for one time settlement of default in export obligation by Advance Authorisation and EPCG holders was a one-time window and it is closed. It was notified by DGFT Public Notice 2/2023 dated 1 April 2023; as amended by Public Notice 20/2023 dated 30 June 2023, registration had to be completed on or before 31.12.2023 and payment of customs duty plus interest by 31.03.2024. A holder who is in default today has to use the standing paragraphs of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023, which this article sets out. Where a demand or a refusal has already been issued, our legal dispute resolution service can take it up.
The amnesty cannot be applied for now: registration closed on 31.12.2023 and payment on 31.03.2024 (Public Notice 20/2023). Today, an Advance Authorisation default is handled by extension of the export obligation period (paragraph 4.40 of the Handbook) or regularisation of bona fide default (paragraphs 4.49 and 4.50); an EPCG default by extension (paragraph 5.16) or payment of duty in proportion to the shortfall with applicable interest (paragraph 5.21). Relaxation on grounds of genuine hardship is a separate request under paragraph 2.59 of the Policy.
The dates, as notified
| Document | Date | What it said |
|---|---|---|
| Public Notice 2/2023 | 1 April 2023 | Notified the scheme; registration on or before 30.06.2023 and payment by 30.09.2023 (para II(vii)) |
| Public Notice 20/2023 | 30 June 2023 | Substituted para II(vii): registration on or before 31.12.2023 and payment by 31.03.2024 |
| Trade Notice 35/2023-24 | 5 December 2023 | The last date for filing applications "will not be extended beyond 31.12.2023" |
Public Notice 20/2023 also names Public Notice 07/2023 dated 18.04.2023 as an amendment of the scheme; its text is not reproduced here. The DGFT listing of Public Notices from October 2023 to September 2026 carries no later notice on the scheme, and the Department of Commerce's year-end review for 2024 records that the last date of payment was 31.03.2024.
What the scheme covered
Public Notice 2/2023 was issued under paragraph 1.03 of the Policy. Its terms were:
- Authorisations covered (para I). Advance Authorisation (all variants) and EPCG (all variants) issued under the Foreign Trade Policy, 2009-14 till 31.03.2015; and those issued under the Foreign Trade Policy, 2004-2009 and before, only where the export obligation period (original or extended) was valid beyond 12.08.2013.
- What was paid (para II(ii)). All customs duties that were exempted, in proportion to the unfulfilled export obligation, and interest at the rate of hundred per cent of such duties exempted. No interest was payable on the portion of Additional Customs Duty and Special Additional Customs Duty.
- How it ran (para II(iii) to (viii)). Registration on the DGFT website; payment to the jurisdictional Customs authorities; proof to the Regional Authority, which could then issue a letter granting the Export Obligation Discharge Certificate.
- Adjudicated cases (para II(ix)). Cases already adjudicated or pending adjudication, originally or in appeal, could also be regularised, by producing the closure letter to the Adjudicating or Appellate Authority.
- Exclusions (para II(x) to (xii)). Cases under investigation, or adjudicated for or involving fraud, misdeclaration or unauthorised diversion of material or capital goods; cases where duty with applicable interest had already been deposited in full. No CENVAT credit or refund was allowed on duties paid under the scheme.
Authorisations issued under the Foreign Trade Policy, 2015-20 or the 2023 Policy were never within para I.
What a holder in default can do now
The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 and the Handbook is notified by the Director General (see section 6).
| Route | Advance Authorisation | EPCG |
|---|---|---|
| More time | Handbook 4.40(e), (f), (g) | Handbook 5.16(b), (c); 5.19 |
| Close the shortfall by payment | Handbook 4.49, 4.50 | Handbook 5.21 |
| Relaxation on genuine hardship | Policy 2.59 | Policy 2.59 |
| If nothing is done | Action under the Act, Policy and Customs Act | Handbook 5.24 |
Advance Authorisation
Paragraph 4.22 of the Policy leaves the export obligation period and its extension to the Handbook (see paragraph 4.22).
- Extension. Under paragraph 4.40(a) of the Handbook the period is 18 months from the date of issue of the authorisation. The Regional Authority may consider one extension of up to six months from the date of expiry on payment of a composition fee (4.40(e)) and a further six months on a higher fee (4.40(f)); under no circumstance may it allow extension beyond 12 months from the date of expiry. Where a ban or restriction is imposed on the export product, the period stands extended for the duration of the ban without composition fee (4.40(g)).
- Regularisation of bona fide default. Under paragraph 4.49, a shortfall in quantity is regularised by paying customs duty on the unutilised value of the imported or indigenously procured material with interest as notified by the Department of Revenue, plus an amount equal to 10% of the CIF value of unutilised imported material if the item was restricted (4.49(a)). A shortfall in value attracts no penalty if the minimum value addition is achieved; otherwise 1% of the shortfall in FOB value is deposited (4.49(b)).
- No import made. A holder who cannot complete the obligation and has made no import may have the authorisation cancelled and apply for drawback, after Customs permits conversion of the shipping bills (4.49(e)).
- Payment. Duty and interest are paid online through the ICEGATE payment gateway within 30 days of the demand; payment on the holder's own calculation is allowed and is adjusted at closure (4.50(a)). Payment is without prejudice to action by Customs under the Customs Act, 1962 (4.50(g)).
The full reading is in paragraphs 4.49 and 4.50: regularisation of bona fide default.
EPCG
- Extension. Beyond 6 years, two extensions of one year each, or two years in one go, may be considered by the Regional Authority with composition fee (paragraph 5.16(b)). The request is made within 6 months from expiry of the original period; later requests carry a late fee, and no extension beyond 8 years from the date of issue is allowed under this provision (5.16(c)). A ban on the export product extends the period automatically (5.19). See paragraphs 5.15, 5.16 and 5.19.
- Regularisation and exit. An unutilised authorisation may be surrendered at any time without penalty or fees (5.21(a)). Where the obligation is not fulfilled, the holder pays customs duty, taxes and cess in proportion to the shortfall with applicable interest as prescribed by the Customs authority; the same route may be used to exit at the holder's option (5.21(b)). Provisional payment on own calculation follows paragraph 4.50 (5.21(e)).
- Otherwise. Failure to fulfil the obligation makes the holder liable to action under the Act, the Policy and Handbook and the Customs Act, 1962 (5.24).
Relaxation and the Settlement Commission
Under paragraph 2.59 of the Policy, the DGFT may in public interest grant exemption, relaxation or relief on grounds of genuine hardship and adverse impact on trade, after consulting the committees named there; paragraph 2.60 provides a personal hearing against a committee decision. Trade Notice 35/2023-24 records that policy relaxation is not a matter of right. See paragraphs 2.58 to 2.60. Paragraph 2.61 notes that the Settlement Commission in the Department of Revenue is empowered to decide cases of firms that defaulted for reasons beyond their control; see sections 11A, 11B and 12 of the Act.
Amnesty terms against the standing paragraphs
The amnesty limited interest to hundred per cent of the duties exempted and charged none on two duty components. Paragraphs 4.49, 4.50 and 5.21 of the Handbook print no such limit: they speak of interest "as notified" or "applicable". Example: Sagar Exports holds an EPCG authorisation issued in 2019 and has a shortfall. It was never within para I of the scheme; its routes are paragraphs 5.16 and 5.21.
Common mistakes
- Planning on the amnesty for a present default. Registration closed on 31.12.2023.
- Waiting for a relaxation request to be decided while the extension window in paragraph 4.40 or 5.16 runs out.
- Treating payment under paragraph 4.50 as the end of the matter; it is without prejudice to Customs action.
- Assuming the amnesty interest limit applies to regularisation under paragraph 4.49 or 5.21.
Need help with an export obligation default?
Which route fits depends on the authorisation, its dates and the size of the shortfall. Our legal dispute resolution team reviews the authorisation, works out the options under the paragraphs above and handles the reply to any notice.
Key takeaways
- The amnesty was notified on 1 April 2023 and is closed: registration by 31.12.2023, payment by 31.03.2024.
- It covered Advance Authorisation and EPCG authorisations of the 2009-14 Policy till 31.03.2015, and older ones valid beyond 12.08.2013.
- Today: Handbook 4.40, 4.49 and 4.50 for Advance Authorisation; 5.16 and 5.21 for EPCG.
- Relaxation under paragraph 2.59 of the Policy is discretionary.
Read next
- Monitoring and redemption of export obligation under Advance Authorisation
- Paragraphs 5.04 to 5.08: EPCG export obligation
- Section 11 of the Act: contravention, penalty and settlement
Disclaimer: Based on DGFT Public Notice 2/2023 dated 1 April 2023, Public Notice 20/2023 dated 30 June 2023 and Trade Notice 35/2023-24 dated 5 December 2023, and on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 (Chapters 4 and 5, file of July 2026) published on the DGFT website, as consulted on 2 to 4 October 2026. The Policy copy carries no "updated up to" date. Later Notifications, Public Notices and Trade Notices should be checked on the DGFT website before acting. This article is general information, not legal advice.