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Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan
Public Notice No.30/2015-20
New Delhi, Dated the 14th August, 2018
Subject:- Acceptance of installation certificate under EPCG Scheme by the RAs,
wherein installation certificate is submitted beyond 18 months, without
penalty
In exercise of powers conferred under Paragraph 2.04 of FTP (2015-20) read with
Paragraph 2.58 of FTP (2015-20), the Director General of Foreign Trade in public interest
hereby makes the one time relaxation in procedure in respect of acceptance of installation
certificate under the EPCG Scheme.
1. Under the EPCG Scheme, the authorization holders are required to submit the
installation certificate showing installation of the capital goods to the RA within the prescribed
time period.
2. Sometimes, the submission of installation certificate to the RAs was not within the time
prescribed on account of various reasons, including delay in installation of the machinery/delay
in issuance of installation certificate etc. The EPCG Committee was receiving requests for
condonation of time period of submission of installation certificate to the Regional authorities.
Some of such requests for condonation were considered by the EPCG Committee on payment
of composition fee ofRs.5,000/-
3. As a facilitative measure,
Public Notice No.37/2015-20
dated 25.10.2017 was issued
permitting one time relaxation for condonation of time period upto 31.03.2018 condoning the
delay in submission of installation certificate on payment of penalty of Rs.5000/- per
authorization (provided the installation has happened within the period of 18 months). The
benefit of said Public Notice was further extended upto 30.09.2018 vide
Public Notice
No.0l/2015-20 dated 26.04.2018.
4. There have been representations from the Trade for accepting the submission of
installation certificate without insisting on penalty, if the installation has happened within the
specified time prescribed. The contention in the representations is that as per their
understanding, of the para 5.3.1 of HBP (2009-14), there was no time limit for submission of
the installation certificate and the time limit was only for the installation of machinery. It has
also been pointed out that in the past, some RAs have accepted the installation certificate even
at the time of redemption. Therefore, it has been requested not to impose any penalty for these
authorizations.
5. The issue has been considered. The submission of installation certificate is an
important aspect of monitoring of the EPCG Scheme which cannot be postponed till the
completion of the EO period. The intent of the para of the HBP was clearly that the capital
goods were to be imported, the installation certificate obtained and presented to the RAs within
the time period in the said para. The reading of the relevant custom notification for the EPCG
Scheme also makes it clear that the installation certificate was to be produced within the period.
specified. However, it is contended by some that they could interpret the para under the HBP
(2009-14) that the period applies only for installation!obtaining the certificate and they can
provide the same to the RAs anytime even at the time of redemption.
6. Taking into account the representations in this regard and to facilitate the ease of doing
business for the purpose, it has been decided to permit the RAs to accept the installation
certificate without insisting for penalty in respect of authorization issued upto 31.03.20 IS as
long as the installation has happened within IS months from the date of import, provided the
EPCG authorization is not under any investigation! adjudicated by RA/ customs authority/ any
other investigative agency. This relaxation will be available upto 31.03.2019. There will not
be any refund of the penalty already paid under the
Public Notice No.37/2015-20 dated
25.10.2017.
7. The other terms and conditions in the
Public Notice No.37/2015-20 dated 25.10.2017
and
Public Notice NO.0l/2015-20 dated 26.04.2015 consistent with this Public Notice will
continue to be applicable.
Effect of this Public Notice: One time relaxation and condonation of delay in submission of
installation certificate to RAs under EPCG Scheme for authorizations issued upto 31.03.20 IS,
without payment of any penalty.
(Issued from F. No.1S/96/AM-19/P-S)
(Alok Vardhan Chaturvedi)
Director General of Foreign Trade
Email: [email protected]
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