TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... nal Central Excise Authority, confirming installation of Capital goods at factory premises of authorization holder or his supporting manufacturer(s)/ vendor(s) within six months from date of completion of import. In the case of import of spares, the installation certificate shall be submitted by the Authorisation holder within a period of three years from the date of import. However, in case of units not registered with Central Excise Authorities, the Authorisation holder shall produce to the concerned RA, a certificate from an independent Chartered Engineer confirming the said installation of Capital goods / spares. 5.3.3 EPCG authorization shall be issued with a single port of registration mentioned in paragraph 4.19 of HBP v1 for imports. However, exports can be made from any port specified in paragraph 4.19. 5.3.4 (i) An applicant may also apply for import of spares, tools, spare refractories and catalyst as are required for installation and maintenance of capital Goods. Application shall contain list of plant / machinery installed in factory / premises of applicant for which spares, tools, spare refractories and catalyst are required, duly certified by Charter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ird party(s). If a merchant exporter is EPCG authorisation holder, name of supporting manufacturer shall also be indicatedon shipping bills. At the time of export, EPCG authorisation No. and date shall be endorsed on shipping bills which are proposed to be presented towards discharge of export obligation. 5.7.2 Export proceeds shall be realised in freely convertible currency except for deemed exports. 7 Export to SEZ Units/ Supplies to Developers/Co-developers, irrespective of currency of realization, would also be counted for discharge of Export Obligation. 5.7.3 Deleted. 5.7.3.1 Supplies made to Oil and Gas sector also may be counted towards discharge of export obligation against an EPCG Authorisation provided it has been issued on or before 31.3.2000 and no benefit under paragraph 8.3 of FTP has been claimed on such supplies. 5.7.4 Exports made to former USSR or to such countries as notified by DGFT shall not be counted for fixing average level of exports. 8 Additional Export Obligation (over and above indicated average) for all previous EPCG licences, which have not been redeemed, will be indicated separately. 5.7.5 Exports under EP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable interest as notified by DoR) of an amount equal to that proportion of the duty leviable on the goods which bears the same proportion as the unfulfilled portion of the export obligation bears to the total export obligation. 5.8.4 EPCG Authorisations issued upto 31.3.2000 shall be governed by provisions laid down in paragraph 6.11 in HBP v1 (RE-99). Notwithstanding the same in HBP v1 (RE-99), authorisation holder shall not have to surrender Special Import licence in case of value wise shortfall. Authorisations issued from 1stApril, 2000 upto 31stMarch, 2002 shall be governed by provisions of Chapter 6 of HBP v1 (RE-01) as amended from time to time. Authorisations issued from 1stApril, 2002 upto 31stAugust, 2004 shall be governed by provisions of para 5.8 of HBP v1 (RE-02) as amended from time to time. However, provision of clubbing even in case of old licences would be as per current provision of para 5.18 of this Handbook. 5.8.5 Deleted. 5.8.6 Deleted. Monitoring of Export Obligation 5.9.1 Authorization holder shall submit to RA concerned by 30thApril of every year, report on fulfillment of export obligation. Such report shall also b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms and conditions as may be prescribed by competent authority. 5.11.1 The firm / company, which is applying 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. DGFT, thereafter shall take up the matter with agency concerned to safeguard government interest on account of default in fulfillment of export obligation imposed on EPCG authorization obtained by such firm / companies. DGFT may consider such application for grant of period of extension upto 12 years or as per rehabilitation package prepared by operating agency and approved by BIFR board / state authority. 5.11.2 Waiver of EO may be considered where, because of force majeure or other unforeseen circumstances / reasons, exporter is unable to fulfill export obligation. Such requests shall be considered by a committee comprising representative(s) of DoC and DoR under DGFT. Decision of this committee shall be notified by DoR for implementation Export Obligation Shortfall 5.12 RA concerned may condone shortfall upto 5% in export obl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfill export obligation or any other condition of authorization, authorization holder shall be liable for action under FT (D R) Act, Orders and Rules made there under, provisions of FTP and Customs Act, 1962. Clubbing of EPCG Authorisations 5.18 Clubbing of two or more EPCG authorizations of same authorization holder would be permitted. 5.18.1 Deleted. 5.18.2 An application for clubbing can be made only to RA concerned in ANF 5D. Clubbing shall not be permitted in case authorisations issued by different RAs. (a) to (c) Deleted. 5.18.3 Total export obligation would be refixed taking into account total of duty saved or total of CIF value of imports. 5.18.4 On clubbing, authorizations for all purposes shall be deemed to be a single EPCG authorization. Export obligation period for clubbed authorization shall be reckoned from first authorization issue-date. However, in cases where clubbed CIF / duty saved value exceeds Rs 100 crore, no corresponding benefit of increase in export obligation period shall be admissible. 5.18.5 Average export obligation for clubbed authorizations would be highest of average export obligations endorsed on in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory premises of authorization holder or his supporting manufacturer(s)/ vendor(s) within six months from date of completion of import. In the case of import of spares, the installation certificate shall be submitted by the importer within a period of three years from the date of import." 3. Has been Deleted vide Public Notice No. 53 (RE-2007)/2004-2009 dated: September 27, 2007 before it was read as, "Wherever more than one EPCG authorisations are issued simultaneously or concurrently, fresh EPCG authorisation would build upon last average export obligation only, notwithstanding actual achievements." 4. Has been substituted vide Public Notice No. 54 (RE-2007)/2004-2009 dated: October 1, 2007 before it was read as, "Deleted" 5. Has been Deleted vide Public Notice No. 53 (RE-2007)/2004-2009 dated: September 27, 2007 before it was read as, "In case of an existing export obligation under EPCG scheme a fresh EPCG authorisation can only be issued provided average of last obligation (including increased amount due to duty saved in last EPCG) has been maintained." 6. Has been added vide Public Notice No. 79 (RE-2007)/2004-2009 dated: November 5, 2007 7. Has been added vide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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