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Amendment in Chapter 5 pertaining to Export Promotion Capital Goods (EPCG) Scheme of the Hand Book of Procedure (Volume I)
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....reign Trade E-mail: [email protected] (Issued from F. No. 18/03/AM-14/P-5) CHAPTER 5 EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME 5.1 Policy Policy relating to Zero Duty EPCG Scheme is given in Chapter 5 of FTP. 5.2 Application Form An application for grant of an authorization should be made to RA concerned in ANF 5A along with documents prescribed therein. 5.2A EPCG Authorization for Annual Requirement The Authorization for Annual Requirement will be issued subject to the following conditions in addition to other terms and conditions governing the EPCG scheme:- (a) Authorizations shall be issued with a specific duty saved amount and corresponding export obligation. The applicant would be required to indicate export products proposed to be exported under the authorization. (b) The authorization holder shall also be required to submit a Nexus Certificate from an independent Chartered Engineer (CEC) in Appendix 32A, to the Customs authorities at the time of clearance of imported capital goods. A copy of the CEC shall be submitted to the concerned Regional Authority alongwith copy of the bill of entry, within 30 days from th....
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....are required. (ii) Value of duty saved allowed under the authorization. (iii) Description of product to be exported with value of export obligation as per FTP. (b) Further, at time of final redemption of export obligation, authorization holder shall submit certificate from Independent Chartered Engineer confirming use of spares, tools, spare refractories and catalyst so imported in the installed capital goods on the basis of stock & consumption register maintained by authorization holder. (a) Separate Authorisation shall be issued in case application is filed under Para 5.2A of FTP. 5.4 EPCG Scheme for conversion of EOU/Relocated SEZ Units to DTA Unit An EOU/ a relocated SEZ unit, while converting to a DTA Unit, may apply for an EPCG authorization in ANF alongwith documents prescribed therein. 'No Objection Certificate' should be produced from concerned Development Commissioner. 5.5 Indigenous Sourcing of Capital Goods (a) EPCG authorization holder intending to source capital goods indigenously shall request to RA for invalidating EPCG authorization for direct import / Issuance of ARO. (b) ....
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....i) Exports to such country as may have been notified by DGFT for this purpose from time to time; (ii) Exports being counted for fulfilling specific EO in respect of EPCG Authorizations within valid EO Period (whether original or extended). 5.7.5 Export under EPCG scheme shall also be entitled for benefits under Chapter 4 of FTP. 5.7.6 (a) In case of export of goods relating to: (i) Handicraft, (ii) Handlooms, (iii) Cottage & Tiny sector, (iv) Agriculture, (v) Aqua-culture (including Fisheries), Pisciculture (vi) Animal husbandry, (vii) Floriculture & Horticulture, (viii) Poultry, (ix) ....
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....P Vol.1 (RE-99). Notwithstanding the same in HBP Vol. 1 (RE-99), authorization holder shall not have to surrender special Import licence in case of value wise shortfall. (b) Authorizations issued from 1^st April, 2000 upto 31^st March, 2002 shall be governed by provisions of Chapter 6 of HBP Vol. 1 (RE-01) as amended from time to time. (c) Authorizations issued from 1^st April, 2002 upto 31^st August, 2004 shall be governed by provisions of para 5.8 of HBP Vol. 1 (RE-02) as amended from time to time. (d) Authorizations issued from 1^st September, 2004 upto 17^th April, 2013 shall be governed by provisions of para 5.8 of HBP Vol. 1 (RE-12) as amended till 17.04.2013. 5.9 Monitoring of Export Obligation Authorization holder shall submit to RA concerned by 30^th April of every year, report on fulfilment of export obligation. RA concerned may issue partial EO fulfilment certificate, provided export performance is proportionately adequate to fulfilment of export obligation. 5.10 Automatic Reduction/ Enhancement upto 10% of CIF value and prorata Reduction/ Enhancement in export obligation (a)If authorization issued has actu....
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....y EPCG Authorizations only one extension of 2 years in export obligation period may be considered by concerned RA, on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled export obligation or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be, at the choice of the exporter. (d) Request for extension in EO Period shall be made to RA within 30 days from the date of expiry of original EO Period. (e) Extension in export obligation period shall also be subject to such terms and conditions as may be prescribed by competent authority. 5.11.1 (a) The firm /company,whileapplying for registration with BIFR/Rehabilitation Department of State Government, shall also intimate DGFT with regard to relief sought for EPCG authorization, if any within 30 days of receipt of application by agency concerned. (b) DGFT, thereafter, shall take up the matter with agency concerned to safeguard government interest on account of default in fulfilment of export obligation imposed on EPCG authorization obtained by such firm/companies. (c) DGFT ....
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....15 days. Once documents are complete, EO will be discharged within 30 days of receipt of complete documents /information. (d) Process of issue of final discharge certificate/ rejection shall be completed within a period of 90 days from date of receipt of initial request. Applications that remain outstanding beyond a period of 90 days shall be reported to DGFT alongwith reasons thereof, immediately thereafter. 5.14 Regularization of Bonafide Default In case, EPCG authorization holder fails to fulfil prescribed export obligation, he shall pay Customs Duty along with applicable interest as prescribed by Customs authority. Such facilities can also be availed by EPCG authorization holder to exit at his option. The authorization holder will have the option to furnish valid duty credit scrips, issued under Chapter 3 of FTP, for payment of the customs duty component. 5.15 Maintenance of Records Every EPCG authorization holder shall maintain, for a period of 3 years from date of redemption, a true and proper account of exports/ supplies made and services rendered towards fulfilment of export obligation. 5.16 Re-Export of Capital Goods....
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....dation of the capital goods would be made in ANF5A. 5.20 Import of Refurbished / Reconditioned Spares and Tools (a) Import of refurbished / reconditioned spares must have a residual life not less than 80% of life of original spare, which would be certified by EPCG authorization holder. (b) The tools imported under EPCG Scheme may be transferred to any of units or group companies of applicant. 5.21 Revalidation of authorization issued under EPCG scheme shall not be allowed. 5.22 Post Export EPCG Duty Credit Scrip(s) (a) Exporters can exercise this option by filing an application in ANF5A with the concerned RA, selecting an option for this Scheme. (b) For importing Capital Goods, all applicable duties shall be paid in cash by the exporter. (c) RA shall issue an Authorization specifying (i) "Not for imports" on the body of the Authorization; (ii) Average EO, if any; (iii) Specific EO @ 85% of the applicable specific EO, computed as if the imports were to take the benefit of duty exemption; and, (iv) EOP, which shall commence from the ....