Import Rules for Cars and Microbuses Under 5% EPCG Scheme Updated; Status Hotels Exempt from Bank Guarantee Requirement.

The circular from the Directorate General of Foreign Trade addresses the import of cars and microbuses by travel agents and tour operators under the 5% EPCG Scheme. Initially, both the Hotel and Tourism Industries were required to provide a bank guarantee (BG) equivalent to 100% of the duty saved on imports. However, hotels with status certificates are now exempt from this requirement, aligning with previous exemptions under the 0%/10% EPCG Scheme. The circular clarifies that both status and non-status holders in the Hotel and Tourism industries can apply for imports under the scheme, with the BG requirement applicable except for exempted cases.