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5% Duty EPCG Scheme
Circular No. 80 dated 22nd September 2000
Kind attention is invited to DOR Circular No. 39/
2000-Cus. dated 11.5.2000 wherein the changes effected in EPCG and Duty
Exemption Schemes announced in Exim Policy 2000-2001 on 31.3.2000 were outlined.
As regards issue of licence to service providers under 5% duty EPCG Scheme, it
was mentioned that DGFT would issue licences only to those service providers to
whom EPCG Licence under 10% duty/ zero duty Scheme were issued earlier. The
above said provision has raised doubts whether in respect of 5% duty EPCG
licence issued to service providers it would be necessary for Customs to
ascertain whether in the past such licence was issued under 10%/ zero duty
Scheme.
2. The Exim Policy
2000-2001 announced on 31.3.2000 provides for issue of EPCG Licence to all
categories of service providers irrespective of whether 10%/ zero duty licence
was issued in the past. As import licences are issued by DGFT authorities in
terms of Exim Policy, it would not be proper on the part of Customs to go into
this aspect at the time of allowing clearance of goods.
3. It is, therefore,
clarified that for the purpose of extending duty concession under 5% duty EPCG
Scheme to service providers, Customs would extend 5% duty benefit so long as the
conditions specified in Customs Notification No. 49/ 2000-Cus. dated 27.4.2000
are fulfilled and the licence is otherwise valid to cover imported goods.
4. Standing Orders/
Departmental orders for the information and guidance of the field staff and
trade/ public notices for the trade may be issued and copies of the same may be
forwarded to the Joint Secretary (Drawback).
5.
Receipt of this Circular may please be acknowledged.
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