TaxTMI 
TaxTMI 
Incorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14 - option providing flexibility to return either benefit
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....nce of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14 - option providing flexibility to return either benefit. The undersigned is directed to say that instances of simultaneous issuance of zero duty EPCG and SHIS were detected by DRI and highlighted to the DGFT. Subsequently, the CAG of India also mapped the concurrent availing of SHIS and zero duty EPCG not being in line with FTP 2009-14 provisions. The issue revolves around wordings in para 5.1A HBP (27.08.2009), para 5.1(f) FTP (5.6.2012), para 5.1(b) FTP (18.4.2013), para 3.10.3 and 9.3 (HBP). 2. After inter-Departmental consultations, that also took into account wordings in conditions specified in Customs EPCG/Post Export EPCG notification Nos. 101/200....
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....ise of powers conferred under Para 2.04 of the Foreign Trade Policy 2015-2020. This Directorate had received references from Directorate of Revenue Intelligence and various exporters, on the subject of incorrectly issued simultaneous benefits of Status Holder Incentive Scheme (SHIS) and Zero Duty EPCG Authorization under Foreign Trade Policy 2009-14. The issue involves Para 5.1(b) of FTP and Para 3.10.3(b) of HBP 2009-14. The representations have been examined by this Directorate in consultation with Department of Revenue and it has been decided that exporters who have been issued or availed such simultaneous benefit of these schemes shall be allowed flexibility, to the extent specified in this public notice, to choose one of the two sch....
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....stoms Act if EPCG returned was incorrectly availed) by the exporter. The unutilized zero duty EPCG (whole or part) may be surrendered. Further, instead of return of zero duty EPCG (i.e. return of all the relevant authorizations), the exporter may opt to convert zero duty EPCGs issued till 17.4.2013 to 3% EPCGs (subject to eligibility) by paying the differential duties plus applicable interest (at the rate prescribed under Section 28AA) from date of clearance of the goods till the date of payment. In such cases, SHIS scrip need not be surrendered. This option shall not be available when the zero duty EPCG is already redeemed by DGFT. When zero duty Post Export EPCG is to be returned, the authorization(s) shall be surrendered. If any re....
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....ding DRI. The Annexure provides the proper interpretation on the issuance of SHIS and Zero duty EPCG/PE-EPCG benefits. F. Consequential Action by CBEC The CBEC would be issuing a separate Circular for guidance of its field formations. Effect of this Public Notice: The exporters who have incorrectly availed simultaneous benefit of zero percent EPCG and SHIS have been provided an option to surrender one of the benefits subject to certain conditions. (Anup Wadhawan) Director General of Foreign Trade [Issued from F.No. 01/61/180/41/AM-13/PC3(Pt.)] Annexure to Public Notice No. 30 /2015-20 dated 08.09.2016 Different Scenarios of incorrect/simultaneous issuance of SHIS & Zero duty EPCG benefits Glossary: S1....
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.... S2 E EPCG issued first. Wrong issuance of SHIS. S2 will lapse forever i.e. S2* and S2** will not be available in future, as E has been availed. S1*S2 E SHIS issued first. S1* available if EPCG not availed in 2010-11. Wrong issuance of EPCG if S2 availed was not already surrendered or refunded with applicable interest in case utilized. N E S2 will lapse forever i.e. S2* and S3** will not be available in future, as E has been availed. S1 * N Scrip has been correctly issued, provided 0% EPCG has not been availed in 2010-11. S2 N Scrip has been correctly issued N N Not Relevant Year....
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....bsp; S2**/S3*/S4 E SHIS issued first. S2** availed if EPCG not availed in 2011-12. or S3* available if EPCG not availed in 2012-13. Wrong issuance of EPCG if S4 availed was not already surrendered or refunded with applicable interest in case utilized. N E S4 will lapse forever i.e. S4* and S4** will not be available in future, as E has been availed. S2** N Scrip has been correctly issued, provided E has not been availed in 2011-12. S3* N Scrip has been correctly issued, provided E has not been availed in 2012-13. S4 N Scrip has been correctly issued. N N Not Relevant Year 6 2014-15 ....