The Directorate General of Foreign Trade (DGFT) has introduced a series of enhanced features in the Bank Guarantee (BG) Repository Module on the DGFT Portal, including automatic expiry alerts for exporters, digital communications for renewal and encashment of bank guarantees, and a structured mechanism for tracking the status of BGs.
According to DGFT, the enhanced functionalities have been deployed across both the Customer Portal (CP) and Back Office (BO) interfaces of the BG Repository Module. The changes are aimed at streamlining the processing of bank guarantees and enabling authorities and exporters to proactively monitor them.
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Exporters to Receive BG Expiry Alerts 60 and 45 Days in Advance
One of the significant changes is the introduction of an automated alert mechanism for bank guarantees approaching their expiry date.
DGFT has provided that system-triggered email alerts will be sent to exporters 60 days and 45 days before the expiry of a bank guarantee. This is intended to give exporters sufficient advance notice to take the necessary steps for renewal or replacement and avoid complications arising from the expiry of a BG.
The portal has also been provided with a new “Purpose” field. Exporters or other users will be able to indicate through this field whether the bank guarantee being submitted is a fresh BG or a replacement of an existing BG.
The feature is expected to make it easier to distinguish new guarantees from replacement guarantees within the electronic repository and maintain a clearer record of their status.
Regional Authorities Can Digitally Issue BG Communications
DGFT has also expanded the digital capabilities available to its Regional Authorities.
Under the enhanced system, Regional Authorities may generate and digitally sign communications directly through the DGFT Portal in relation to different stages of the bank guarantee process.
These communications can cover the renewal or replacement of a BG, renewal notices to banks, encashment notices to banks and return of BGs to exporters, depending upon the circumstances of a particular case.
The facility is intended to move the process away from separate or paper-based communications and establish a more uniform digital process across DGFT Regional Authorities.
Structured Status Tracking Introduced for Bank Guarantees
Another major feature is the introduction of a structured mechanism through which the status of a bank guarantee can be tracked at different stages.
DGFT has identified several specific statuses that may now be reflected in the repository, including “Pending Acceptance”, “Accepted”, “Replaced”, “Returned on EODC”, “Encashment Notice to Bank Issued”, “Renewal Notice to Exporter Issued” and “Renewal Notice to Bank Issued.”
The structured status system should provide exporters as well as Regional Authorities with greater visibility over the stage at which a particular bank guarantee is pending.
It also creates a more systematic electronic record of actions such as replacement, return, renewal and encashment instead of requiring such developments to be monitored separately.
Special Mechanism for BGs Declared Under Bills Repository
DGFT has further prescribed how bank guarantees declared under the Bills Repository will be dealt with under the enhanced system.
Such BGs will remain under the status “Pending Acceptance” until they are accepted by the concerned Regional Authority.
A further automated mechanism has been provided where the bank guarantee is connected with an invalidation file under the Advance Authorisation (AA) or Export Promotion Capital Goods (EPCG) framework.
Where such a BG is linked to an invalidation file under AA/EPCG, its status will automatically change to “Accepted” once the invalidation file is approved.
This automatic updating of the BG status links the relevant approval workflow with the BG Repository and reduces the need for separate manual status updates.
DGFT Aims to Reduce Paper-Based BG Tracking
Explaining the objective behind the changes, DGFT stated that the enhancements are intended to reduce paper-based tracking and enable proactive monitoring of bank guarantees approaching expiry.
The new features are also aimed at streamlining the process of linking replacement bank guarantees and facilitating uniform and digitally signed communications across Regional Authorities.
The combination of automatic expiry alerts, defined status categories and portal-generated communications effectively provides a more integrated electronic mechanism for managing BG-related processes on the DGFT Portal.
User Manual Available on DGFT Website
To assist exporters, members of trade and DGFT officials in adopting the enhanced functionality, DGFT has stated that a User Manual detailing the relevant workflows has been made available on the DGFT website.
The manual is intended to provide guidance for the effective use and adoption of the new features. All concerned stakeholders have been asked to take note of the changes and ensure effective adoption of the enhanced functionalities.
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