Are you an exporter or importer in Mumbai facing challenges in meeting the provisions of India’s Foreign Trade Policy (FTP)? Whether it’s extending an export obligation period, seeking waivers for penalties, or resolving procedural complexities, the Policy Relaxation Committee (PRC) under the Directorate General of Foreign Trade (DGFT) can provide the relief you need. At Sohamma International Pvt. Ltd., we specialize in offering expert consultancy services for the Policy Relaxation Committee in Mumbai, ensuring seamless navigation of DGFT regulations. With over two decades of experience, our team at Sohamma International Pvt.Ltd. is your trusted partner in resolving complex export-import issues. In this comprehensive guide, we’ll explore the role of the PRC, the types of cases it handles, the application process, and how Sohamma International can help you achieve the best outcomes.
What is the Policy Relaxation Committee (PRC)?
The Policy
Relaxation Committee (PRC), also referred to as the Exemption from
Policy/Procedures (EPP) Committee, is a body under the DGFT that grants
exemptions, relaxations, or relief from specific provisions of the Foreign
Trade Policy (FTP) or its associated procedures. Established under Paragraph
2.58 of the FTP, the PRC addresses genuine hardships faced by exporters and
importers due to procedural or compliance challenges. The committee evaluates
cases on grounds of public interest, adverse trade impacts, or unforeseen
difficulties, ensuring businesses can continue their operations smoothly.
In Mumbai,
a global trade hub, the PRC plays a critical role in supporting businesses
engaged in international trade. From small-scale exporters to large
corporations, the PRC offers solutions for issues like non-compliance, expired
licenses, or procedural bottlenecks. With the introduction of the online e-PRC
system in January 2021, the process has become more streamlined, requiring
applications to be submitted electronically via the DGFT portal.
Key Functions of the Policy Relaxation Committee
The PRC
handles a wide range of cases to support exporters and importers. Some common
scenarios include:
- Extension of Export
Obligation Period: For schemes like Export Promotion Capital
Goods (EPCG), where businesses need more time to meet export commitments.
- Waiver of Penalties and
Composition Fees:
Relief from financial penalties due to genuine compliance issues.
- Conversion of Free Shipping
Bills:
Changing free shipping bills to duty drawback shipping bills to claim
benefits.
- Revalidation of Expired
Licenses:
Extending the validity of licenses that have lapsed.
- Relaxation in Import
Conditions:
Modifying import restrictions to facilitate trade operations.
At Sohamma
International, we understand the complexities of these cases and provide
end-to-end support to ensure your application is processed efficiently and
effectively.
Why Choose Sohamma International for Policy
Relaxation Committee Services in Mumbai?
Located
at 209, Hariom Plaza, M.G. Road, Borivali East, Mumbai, Sohamma International Pvt.Ltd.
is a leading consultancy firm specializing in export-import incentives and
DGFT-related services. With over 24 years of experience, we have helped more
than 200 small, medium, and large-scale organizations navigate the intricacies
of international trade. Here’s why we are the go-to choice for Policy
Relaxation Committee services in Mumbai:
- Expert Representation: Our team, led by founder
Ramesh Chavan with 31 years of experience in indirect taxation and
export-import incentives, ensures strong case presentations at PRC
meetings for optimal outcomes.
- Hassle-Free Application
Processing: We
handle complete documentation, justification drafting, and follow-ups with
the DGFT, saving you time and effort.
- Comprehensive Services: From EPCG licensing to
Special Valuation Branch (SVB) approvals, we offer end-to-end solutions
under one roof.
- Proven Track Record: As an ISO 9001-2015
certified company registered under the MSMED Act 2006, we maintain the
highest standards of integrity and deliver result-oriented solutions.
- Client-Centric Approach: We work closely with clients
to understand their unique challenges, offering tailored solutions that
align with DGFT norms.
- Pan-India Presence: While our head office is
in Mumbai, we serve clients across Pune, Delhi, Chennai, Bangalore,
Kandla, and more.
Ready to
resolve your PRC-related challenges? Contact Sohamma International at
+91-9870276094 or visit Sohamma International Pvt.Ltd. for a
free consultation.
Common Challenges Addressed by the Policy
Relaxation Committee
Exporters
and importers in Mumbai often face hurdles that require PRC intervention. Below
are some common scenarios where the PRC can provide relief:
1. Extension of Export Obligation Period
Under
schemes like EPCG, businesses import capital goods at a concessional duty rate
in exchange for meeting specific export obligations within a set timeframe.
Delays due to market conditions, supply chain issues, or other unforeseen
circumstances can make it difficult to meet these deadlines. The PRC can grant
extensions, allowing businesses to fulfill their obligations without penalties.
2. Waiver of Penalties and Composition Fees
Non-compliance
with FTP provisions, such as failing to meet export targets, can result in
penalties. The PRC evaluates genuine cases of hardship and may waive or reduce
these penalties, ensuring businesses are not unduly burdened.
3. Conversion of Shipping Bills
Exporters
may initially file free shipping bills but later realize they are eligible for
duty drawback benefits. The PRC can approve conversions to enable businesses to
claim these incentives.
4. Revalidation of Expired Licenses
Licenses
under schemes like Advance Authorisation or EPCG may expire due to delays in
project execution. The PRC can revalidate these licenses, allowing businesses
to continue their operations.
5. Relaxation in Import Conditions
Certain
import restrictions, such as specific conditions for raw materials or capital
goods, can hinder trade. The PRC can relax these conditions to facilitate
smoother operations.
Sohamma
International excels at preparing robust applications for these cases, ensuring
all documentation and justifications meet DGFT standards. Our team’s deep
understanding of FTP and procedural nuances guarantees the best possible
outcomes for our clients.
The Online e-PRC Application Process
Since
January 25, 2021, the DGFT has mandated that all PRC applications be submitted
through the online e-PRC system on the DGFT portal. This digital transformation
has streamlined the process, making it more efficient but also requiring
precise documentation and compliance. Here’s a step-by-step guide to the e-PRC
application process:
- Obtain an Importer Exporter
Code (IEC): An
IEC is mandatory for applying for PRC relaxations. If you don’t have one,
Sohamma International can assist with IEC registration and updates.
- Log into the DGFT Portal: Access the exporter’s
dashboard on dgft.gov.in to
initiate your application.
- Complete the Application
Form:
Provide detailed information about your case, including the specific FTP
provision you seek relaxation for and the justification for your request.
- Submit Supporting Documents: Include relevant
documents, such as export-import records, licenses, and evidence of
hardship or adverse trade impact.
- Draft a Strong Justification: Clearly explain the
reasons for your request, such as market disruptions, logistical
challenges, or other genuine issues.
- Follow-Up with DGFT: Track your application
status and respond to any queries from the PRC promptly.
At Sohamma International
Pvt.Ltd., we take care of the entire process, from drafting compelling
justifications to ensuring all documents comply with DGFT requirements. Our
expert representation at PRC meetings ensures your case is presented
effectively, maximizing your chances of approval.
Why Mumbai Businesses Need PRC Expertise
Mumbai,
as India’s financial and trade capital, is home to thousands of exporters and
importers dealing with complex international trade regulations. From automobile
components to garments and engineering goods, businesses in Mumbai engage in
diverse sectors that often face FTP-related challenges. The PRC is particularly
relevant for:
- Small and Medium Enterprises
(SMEs):
SMEs often lack the resources to navigate complex DGFT procedures. Sohamma
International provides cost-effective solutions tailored to their needs.
- Large Corporations: Large-scale exporters
dealing with high-value transactions benefit from our expertise in
handling complex cases, such as EPCG or SVB approvals.
- New Exporters: Businesses new to
international trade may struggle with compliance. Our team guides them
through the PRC process, ensuring a smooth experience.
With our
head office in Borivali East, Mumbai, Sohamma International is
well-positioned to serve the city’s vibrant business community. Our deep
connections with DGFT offices and other regulatory bodies enable us to deliver
faster results.
How Sohamma International Simplifies PRC Services
At Sohamma
International, we pride ourselves on our out-of-the-box approach and strong
subject knowledge, which allow us to handle even the most complex PRC cases.
Here’s how we simplify the process for you:
1. Expert Case Preparation
Our team,
led by Ramesh Chavan with over 31 years of experience, prepares robust
applications with detailed justifications and complete documentation. We ensure
your case aligns with DGFT norms and addresses the specific challenges you
face.
2. Seamless Documentation
We handle
all aspects of documentation, from gathering export-import records to drafting
cover letters and justifications, ensuring compliance with PRC requirements.
3. Strong Representation
Our
experts represent your case at PRC meetings in New Delhi, presenting compelling
arguments to secure approvals. We leverage our interactions with ministries and
regulatory bodies to achieve the best outcomes.
4. End-to-End Support
From
application filing to follow-ups and final approvals, we provide comprehensive
support, saving you time and reducing stress.
5. Additional Services
Beyond
PRC, we offer consultancy for EPCG, Advance Authorisation, SEIS, MEIS, SVB, and
other export-import incentives, making us a one-stop solution for all your
trade needs.
Our
clients, ranging from manufacturers of automobile components to exporters of
aromatic chemicals, trust us for our result-oriented solutions and commitment
to excellence.
Case Studies: Success with Sohamma International
Case Study 1: Extension of Export Obligation Period
A
Mumbai-based engineering firm faced penalties due to delays in meeting EPCG
export obligations caused by global supply chain disruptions. Sohamma
International prepared a detailed PRC application, highlighting the
external factors affecting the client’s operations. Our team presented the case
at the PRC meeting, securing a one-year extension without penalties, saving the
client significant costs.
Case Study 2: Waiver of Composition Fees
A garment
exporter in Mumbai was unable to meet export targets due to market slowdowns.
Our team drafted a compelling justification, supported by market data and
export records, and successfully obtained a waiver of composition fees through
the PRC, allowing the client to continue operations without financial strain.
These
success stories demonstrate our ability to deliver results, even in complex
cases. Visit Sohamma International Pvt.Ltd. to learn
more about our work.
Tips for a Successful PRC Application
To
maximize your chances of approval, follow these tips from Sohamma
International:
- Provide Clear Justifications: Clearly explain the
hardship or adverse trade impact, supported by evidence like market
reports or financial records.
- Ensure Complete
Documentation:
Missing documents can delay or derail your application. We ensure all
paperwork is accurate and complete.
- Act Promptly: Timely submission is
critical, as delays can complicate your case. Our team ensures swift
processing.
- Leverage Expert Guidance: Working with experienced
consultants like Sohamma International ensures your application is robust
and compliant.
Why Timely PRC Intervention Matters
Delays in
addressing FTP-related issues can lead to penalties, license cancellations, or
lost incentives, impacting your business’s profitability. The PRC offers a
lifeline for businesses facing genuine challenges, but navigating the process
requires expertise and precision. Sohamma International ensures your
application is handled with care, minimizing risks and maximizing benefits.
Contact Sohamma International Today
Ready to
resolve your Policy Relaxation Committee
in Mumbai challenges? Sohamma International Pvt. Ltd. is here to
help. Visit us at 209, Hariom Plaza, M.G. Road, Borivali East, Mumbai – 400066,
or contact us at +91-9870276094 or via email at ramesh@sohamma.com. Explore our services
at Sohamma
International Pvt.Ltd. and take the first step toward seamless
compliance and trade success.
With Sohamma International
Pvt.Ltd., you get more than just consultancy—you get a trusted partner
committed to your business’s growth. Let us handle your PRC needs and unlock
the full potential of your export-import operations in Mumbai!
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