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Date: 26-07-2012
Notification No: DGFT Notification No 08(RE-2012)/2009-2014
Issuing Authority: DGFT  
Type: Notification
File No: F.No. 01/94/180/286- FTP 2012-13 /AM 12/PC 4/Pt.
Subject: Amendment in FTP (RE-2012)(2009-2014)
 

Part II, Section 3, Sub-Section (II)
Government of India
Ministry of Commerce and Industry
Department of Commerce
Udyog Bhawan

Notification No. 8 (RE-2012) /2009-2014

New Delhi, the 26 July, 2012

Subject: Amendment in FTP (RE-2012)(2009-2014)

S.O (E) : In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby amends with immediate effect para 5.2A, 9.12, 5.3 and 5.11of Foreign Trade Policy, 2009-2014 (RE 2012).

  1. Sub-Para (a) of Para 5.2 A of FTP has been amended and will now read as under:

    “Spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures, tools, and refractory for initial lining; for existing plant and machinery (imported earlier, under EPCG or otherwise), 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 and 5.2 above (for import of capital goods), to be fulfilled in 8 years (6 years for zero duty EPCG), 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.”

  2. Definition of Capital Goods in Para 9.12 of FTP has been amended and will now read as under:

    "Capital Goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge plus one subsequent charge, equipment and instruments for testing, research and development, quality and pollution control.

    Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector.”

  3.  Clause (iii) of Sub-para (b) of Para 5.3 of FTP has been amended and will now read as under:

    “Bank Guarantee (BG) shall be equivalent to the duty saved. BG can be given by CSP or by any one of the users or a combination thereof, at the option of the CSP.”

  4.  Sub-Para (a) of Para 5.11of FTP has been amended and will now read as under:

    “Post Export EPCG Duty Credit Scrip (s) shall be available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme.”

  5.  Effect of this amendment :

Certain amendments/modifications in Foreign Trade Policy are being made which will take effect from 5.6.2012

(Anup K. Pujari)
Director General of Foreign Trade
E-mail: [email protected]
(Issued from F.No. 01/94/180/286- FTP 2012-13 /AM 12/PC 4/Pt.)


       

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