Directorate General of Foreign Trade through Trade Notice dated 04 August 2021 has provided the Online Procedure for transfer of Advance Authorization/EPCG Authorization in case of amalgamation/de-merger/acquisition. The detailed steps for authorization include:
- Applicant would request for amalgamation/de-merger/ acquisition of IEC by navigating to DGFT Website — > Services — > IEC Profile Management — > ‘Request for Merger/De-merger’.
- Post approval of the given IEC request, the firm may apply for amendment of each of their AAlEPCG authorizations separately. The request may be submitted on the DGFT Website — > Services — > AA (or EPCG) — > Transfer of Authorization.
- The request for amendment of the Authorization(s) would be auto-submitted to the concerned jurisdictional RA from the which the Authorization was issued.
- On approval of the request the given authorization would be amended and updated details would be transmitted electronically to Customs.
- For EPCG authorizations, for the Annual Average Export Obligation (AEO) mentioned on EPCG authorizations, Company A (EPCG authorization holder merging into Company B) the AEO of new entity = AEO of Company A + AEO of company B based on date of merger.
- For the purpose of AEO of company B, firm would be required to submit Chartered Accountant Certificate (CAC) to the concerned RA as part of the online amendment request.
- SIBs and B/Es under the earlier IEC would be available under Bills Repository of the new IEC during the authorization closure process.
For guidance on these new processes, the Help manual & FAQs may be ·accessed on the DGFT Website — > Learn — > ‘Application Help & FAQs’.
