The Hindu Business Line : Export incentives: DGFT to accept only documents with digital signatures

FROM April 1, if an exporter wants to avail himself of the 50 per cent concession in application fee while applying for export incentives, he shall append his application with a digital signature.

However, a more significant benefit of the digital signature lurks underneath the surface — very soon, the Customs Department will accept documents filed with digital signatures.

This is a marked contrast with the earlier system, in vogue until March 31. Till then, when an exporter wanted to claim an export-related incentive — say, a duty waiver under the Duty Entitlement Pass Book scheme, he would file an application electronically and physically submit the documents that prove that exports had taken place.

Then, he would get the DEPB certificate, which would enable him to import certain goods in specified quantities, free of customs duty. But when he actually imported the goods, he had to submit all the documents, this time to the Customs, so that the Customs could verify the authenticity of the DEPB certificate.

But very soon, all this will be history. The Directorate General of Foreign Trade has mandated that electronic applications for export incentives would be accepted only if they are appended with a digital signature. (Applications can also be filed physically, but then the exporter will not get the concession on the application fee, which is linked to the value of the exports.) DEPB certificates will be issued electronically. Issues like transferability of the electronic certificates are being sorted out.

The Director-General of Foreign Trade, Mr L. Mansingh, said at a meeting here on Friday that the Customs Department would soon begin to accept a copy of DEPB certificate issued by the DGFT. The DGFT will simply send a copy of the certificate to the Customs. This will completely eliminate customs verification.

Exporters who were present at a FICCI-organised meet with Mr Mansingh told Business Line that the elimination of customs verification would be of significant help. "If you go to the Customs Department for anything, there is a `transaction cost'," an exporter (who did not want to be identified) said.