TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 R.A, 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 Chartered Engineer or Jurisdictional Central Excise authorities. In such cases EPCG authorization shall not specify list of spares but shall indicate:- (a) Name of plant/machinery for which spares are required. (b) Value of duty saved allowed under the authorization. (c) Descri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. Exports 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. Additional Export Obligation (over and above indicated average) for all previous EPCG Licenses, which have not been redeemed, will be indicated separately. 2 [Exports made against an EPCG licence/authorization, which have not been redeemed, shall not be added up for calculating the average export performance for the purpose of subsequent EPCG authorization.] 5.7.5 Exports under EPCG scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n holder shall, within 3 months from the expiry of the block of years, pay duties of customs (along with 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 1st April, 2000 upto 31st March, 2002 shall be governed by provisions of Chapter 6 of HBP v1 (RE-01) as amended from time to time. Authorisations issued from 1st April, 2002 upto 31st August, 2004 shall be governed by provisions of para 5.8 of HBP v1 (RE-02) as amended from time to time. 5.8.5 Deleted 5.8.6 Deleted. Monitoring of Export Obligation 5.9.1 Authorization holder shall submit to RA concerned by 30th April of every year, report on fulfillment of export obligation. 4 [***] RA concerned may issue partial EO fulf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the export obligation, duty already deposited will be deducted from total duty plus interest to be paid for EO default. Extension in export obligation period shall also be subject to such 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. 9 [5.11.2 Omitted] 8 [5.11.3 To provide relief to exporters of those sectors where total exports in that sector / product group has declined by more than 5%, average export obligation for 2008-09 may be reduced proportionate to reduction in exports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 years from date of redemption, a true and proper account of exports/supplies made and services rendered towards fulfillment of export obligation. Re-Export of Capital Goods Imported Under EPCG Scheme 5.16 Capital Goods imported under EPCG scheme, which are found defective or unfit for use, may be re-exported back to foreign supplier within three years from the date of payment of duty on importation thereof, with permission of RA / Customs Authority. Consequently, EO would be refixed. Replacement of Capital Goods 5.16.1 Capital Goods imported and found defective or otherwise unfit for use may be exported, and Capital Goods in replacement thereof be imported under EPCG scheme. In such cases, while allowing export, the Customs shall credit the duty benefit availed which can be debited again at the time of import of such replaced Capital Goods. Penal Action 5.17 In case of failure to fulfill export obligation or any other condition of authorization, authorization holder shall be liable for action under FT (D R) Act, 1992, Orders and Rules made there under, provisions of FTP and Customs Act, 1962. Clubbing of EPCG authorizations 5.18 Clubbing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80% of life of original spare, which would be certified by EPCG authorization holder. The tools imported under EPCG Scheme may be transferred to any of units or group companies of applicant. 5.22 Revalidation of authorizations issued under EPCG scheme shall not be allowed. ******************** Notes : 1. Has been substituted vide PUBLIC NOTICE NO. 67 (RE-2008)/2004-09 dated 20/8/2008 before it was read as, "Whenever a ban/restriction is imposed on export of any product, export obligation period in respect of EPCG authorizations already issued prior to imposition of ban of such export products, would stand automatically extended for a period equivalent to the duration of ban, without any composition fee and exporter would not be required to fulfill average E.O. as well for the ban period." added vide Public Notice No. 26 (RE-2008)/2004-2009 dated 3 June, 2008 2. Has been added vide Public Notice No. 39/(RE-2008)/2004-2009 dated 04/07/2008 the provision shall be applicable to all EPCG licences issued on or after 1.4.2007 3. The words "spares tools" is separated with insertion of a coma between spares and tools vide Public Notice No. 48/(RE-2008) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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