TMI BlogIncorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14 - option providing flexibility to return either benefitX X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 101/2009-Cus , 102/2009-Cus , 22/2013-Cus , 5/2013-Cus , 23/2013-Cus and SHIS notification No. 104/2009-Cus and clarifications made in Circular Nos. 26/2009-Cus and 38/2010-Cus, the Public Notice No. 30/2015-2020 dated 8.9.2016 (copy attached) has been issued by the Department of Commerce (DGFT) with the concurrence of Department of Revenue. The aspects notified in the Public Notice are self-explanatory. The Ministry directs that pending issues related to the simultaneous issuance or availing of zero duty EPCG/Post Export EPCG and SHIS shall be decided in terms of the said Public Notice. 3. It was noted by the Ministry that consequent to issuance of the said Public Notice, the bar related to dual issuance placed in Customs notifications insofar as they relate to the FTP 2015-20 become unnecessary. These have been removed through Notification No. 52/2016-Customs dated 23.9.2016 that has suitably amended Notification Nos. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Committee would be exercised by DGFT to relax the FTP/HBP provisions requiring the 'prior' return of SHIS. B. Return of zero duty EPCG/Post Export EPCG When zero duty EPCG (i.e. all relevant authorizations) has to be returned, the amount equivalent to the duty forgone shall be refunded in cash with interest at the rate prescribed - (a) Rate in EPCG notification if EPCG returned was correctly availed (b) Rate Under Section 28AA of Customs 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 sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for exports made in year 3 S4 SHIS issued for exports made in year 4 E Zero duty EPCG scheme availed i.e. issued N Not taken i.e not issued *SHIS issued with one year late cut * * SHIS issued with two year late cut Different scenarios in different years on issuance of SHIS, 0% EPCG and 0% Post Export EPCG Year SHIS issued 0% EPCG issued REMARKS (reference to 0% EPCG includes 0% PE-EPCG import authorization) Year 1 2009-10 Not Relevant Year 2 2010-11 S1 E EPCG issued first. Wrong issuance of SHIS. S1 will lapse forever i.e. S1* and S1** will not be available in future, as E has been availed. S1 E SHIS issued first. Wrong issuance of EPCG If SHIS benefit availed was not already surrendered, or refunded with applicable interest in case utilized. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled in 2011-12. Wrong issuance of EPCG if S3 availed was not already surrendered or refund with applicable interest in case utilized. N E S3 will lapse forever i.e. S3* and S3** will not be available in future, as E has been availed. S1** N Scrip has been correctly issued, provided E has not been availed in 2010-11. S2* N Scrip has been correctly issued, provided E has not been availed in 2011-12. S3 N Scrip has been correctly issued N N Not Relevant Year 5 2013-14 S2** E EPCG issued first. S3** available if EPCG not availed in 2011-12. S3* E EPCG issued first. S3* available if EPCG not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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