EPCG Scheme- CBEC Instructions on New Policy / Procedure

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.... I published on 30th April, 1995. In order to give effect to the changes, Department has issued notifications No. 108/95-Customs to 111/95-Customa all dated 5th June, 1995. The most significant changes are related to the execution of a bond with bank guarantee with the Customs authorities, requirement of fulfillment of export obligation year-wise / block-wise, introduction of zero duty EPCG Scheme, and merger of E.P.C.G. Scheme for service sector with the main E.P.C.G. Scheme. Amendment of Existing Notifications 2.    In view of significant changes, revised notification have been issued for import against licences issued under E.P.C.G. Scheme on or after 1st May, 1995. Accordingly, Notification No. 160/92-Customs dated ....

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.... four times the CIF value of capital goods to be fulfilled in five years. The notification also permits imports of spare parts not exceeding 10% of the value of capital goods or capital goods in SKD/CKD condition or components of capital goods within the overall value of the licence issued for imports under the scheme. The same notification applies for import by service sector also. The value of bond to be executed and the extent of bank guarantee to be taken shall be as specified in Ministry's Circular No. 52/95 dated 25th May, 1995 issued from F.No. 605/75/95-DBK. Though no specific provision has been made in the Exim Policy in this regard, notification has prescribed specific obligation to be fulfilled year-wise and in the event of f....

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....e imported in the guise of such  assemblies/ sub- assemblies. Introduction of Zero Duty E.P.C.G. Scheme 4.1 Import under E.P.C.G. Scheme have also been permitted at zero duty with higher export obligation equivalent to six times the CIF value of capital goods on FOB basis or four times the CIF value on 'net foreign exchange' basis to be fulfilled within a period of eight years. In order to give effect to this Scheme, Notification No. 111/95-Customs dated 5th June, 1995 has been issued. Under this scheme, also, though there is no provision in the Exim Policy in this regard. specific export obligation required to be fulfilled within each block of two years from the date of issue of licence has been prescribed and failure to....