The unforeseen COVID-19 pandemic has severely impacted the export sector of the country. As a relief to the affected exporters, the DGFT has issued Public Notice No. 01/2015-20 dated 07 April 2020 whereby the time limit for requesting the RAs for extension of export obligation period or submission of installation certificate has been extended till 31 March 2021. Further, the additional composition fee of Rs. 5,000/-which was required to be paid along with the request has also been waived off.
GLS Comments:
As desperate times needs desperate measures, the DGFT had no choice but to provide such condonation as the Indian exporters are not in a position to meet their export obligations. Though the previous outbreaks such as the SERS, Ebola, H1N1 had little impact on the Indian exports, the ongoing pandemic is expected to have severe repercussions.
Most likely, the fallout of the COVID-19 pandemic will be that countries are increasingly likely to adopt more and more protectionist measures. While countries, particularly those exporting finished manufacturing goods, with established export markets, are likely to wade through such an environment, those like India that are dependent on intermediate and agricultural exports and are on the lookout to tap newer markets, are likely to find the going tougher.
However, as they say, every cloud has a silver lining. The current COVID-19 pandemic may bring up some opportunities for the Indian exporters as various western manufacturers are looking at moving their factories from China. India could capitalize this opportunity by welcoming such manufacturers in India.
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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