CBIC’s landmark regulations now enable post-export conversion of shipping bills under incentive schemes like EPCG and Advance Authorisation—digitally, transparently, and legally—providing long-awaited relief and clarity to India’s honest exporters.
Honest mistakes no longer cost exporters their rightful incentive claims
India’s export ecosystem is undergoing a crucial transformation. Among the most impactful reforms is the formalisation and automation of post-export conversion of shipping bills, especially for shifting from the drawback scheme to instrument-based incentive schemes such as Advance Authorisation, EPCG, and DFIA.
Previously, exporters who selected the wrong scheme during filing were left without recourse. No structured process existed to correct such errors once goods had left Indian shores—leading to disputes, delays, and financial loss. That changes with two key CBIC initiatives:
- Notification No. 21/2025-Customs (N.T.)
- Circular No. 11/2025-Customs
These lay down a transparent and legally backed mechanism for post-export scheme conversion, aligning India’s practices with global standards.
Judicial backing
In the absence of clear legal provisions, Indian courts paved the way. In TMA International Pvt. Ltd. v. Union of India (2007), the Delhi High Court permitted conversion from Drawback to DEPB, provided there was no fraud and required documents were available. Similar views were echoed in Amit Exports (2010) and Samsher Pharmaceuticals (2020).
These rulings established that genuine exporters should not be denied benefits due to procedural lapses. They triggered earlier CBIC circulars, which were steps in the right direction but lacked system-wide clarity and scope.
Legal foundation
The Finance Bill 2025–26 announced a complete digitisation of customs processes, including post-export amendments. Section 149 of the Customs Act, 1962, was amended to support post-export changes via the customs automated system. This provided the legislative foundation for the 2025 regulations and circular.
Key provisions
The new regulations apply to export entries under Section 50 (shipping bills), Section 84 (postal exports), and Section 83 (baggage). Key features include:
- Applicability to both drawback and incentive-based shipping bills
- Application window of 1 year from the date of export, with up to 12 months of extension
- One-time 12-month window for exports made before April 3, 2025
- Mandatory reversal of previously availed incentives
- Exclusion of non-incentive (free) shipping bills
Digital processing
Applications will now be filed via ICEGATE. Customs officers will digitally process amendment requests under Section 149. Data will auto-update with stakeholders like DGFT, GSTN, and RBI.
- Changes like HS code, quantity, or description: Joint/Addl. Commissioner
- Scheme conversions (e.g., Drawback to EPCG): Commissioner/Principal Commissioner
The updated post-EGM module will handle downstream adjustments.
Policy win
This reform empowers MSMEs and e-commerce exporters using India Post or courier channels. With defined steps, documentation, and timelines, exporters now benefit from predictability and procedural ease.
More than a policy tweak, this is a mindset shift—recognising that honest errors shouldn’t deny rightful incentives. For India’s export ambitions to succeed, reforms like this bridge the gap between policy intent and real-world execution.
