TMI BlogCentral Government hereby notifies the Chapter 5 of the Foreign Trade Policy, 2009-2014.X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy, 2009-2014 harmonizing the two versions (Zero Duty and 3% Concessional Duty) of EPCG Schemes . This shall come into force w.e.f. 18th April, 2013. The text of Chapter 5 pertaining to Export Promotion Capital Goods (EPCG) Scheme is annexed (6 pages). Effect of Notification: This version of Chapter 5 of the Foreign Trade Policy deals with policy provisions for Export Promotion Capital Goods (EPCG) Scheme . This will replace the existing version with immediate effect. (Anup K. Pujari) Director General of Foreign Trade E-mail: dgft@nic.in (Issued from F. No. 18/03/AM-14/P-5) Annexure CHAPTER 5 EXPORT PROMOTION CAPITAL GOODS(EPCG) SCHEME 5.1 Zero Duty EPCG Scheme (a) Zero dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the export obligation prescribed in para 5.1 above (for import of capital goods), to be fulfilled in 6 years, reckoned from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 10% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 10% of the book value of the plant and machinery. (b) Provision of Para 5.2A will not be applicable for import of spares in respect of capital goods sourced indig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated / certified as a Common Service Provider (CSP) by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:- (i) Exports by users of the common service, to be counted towards fulfilment of EO of the CSP shall (i) contain the EPCG Authorization details of the CSP in the respective Shipping bills and (ii) concerned RA must be informed about the details of the Users prior to such export; (ii) Such exports will not count towards fulfilment of other specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illed by the supply of ITA-I items to DTA, provided realization is in free foreign exchange. (f) Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d), (f), (j) of FTP shall also be counted towards fulfilment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP. (g) Royalty payments received by the Authorization Holder in freely convertible currency and foreign exchange received for R D services shall also be counted for discharge under EPCG. (h) Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for EO discharge. 5.5.1 Provision for BIFR units (a) Any firm/ company registered with BIFR o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted under EPCG Authorization(s). Conditions governing are as under: (a) Minimum time period for applying for Technological Upgradation is 4 years from earlier EPCG Authorization issue-date. (b) Minimum exports made must be 50% of total export obligation imposed on earlier EPCG Authorization(s). (c) EO would be re-fixed such that (i) total EO shall be sum total of 6 times of duty saved of earlier EPCG and the new one, and (ii) EOP is 6 years from EPCG authorization issue-date under this Para. (d) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues to remain unchanged. (d) Duty remission shall be in proportion to the EO fulfilled. (e) These Duty Credit Scrip(s) can be used for payment of applicable custom duties for imports and applicable excise duties for domestic procurement. (f) All provisions of the existing EPCG Scheme shall apply insofar as they are not inconsistent with this scheme. 5.12 Reduced EO for North East Region and J K For units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Jammu Kashmir, specific EO shall be 25% of the EO, as stipulated in Para 5.1 or Para 5.2, as applicable. There shall be no change in average EO as stipulated in Para 5.5, if any. - Notification Tax Management India - taxman ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
