| Date: |
22-02-2000
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| Notification No: |
Customs Circular No 13/2000
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
EPCG (Zero duty) Scheme - Scope of Notification No 29/ 97-CUS. clarified
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EPCG (Zero duty) Scheme - Scope of Notification No 29/ 97-CUS. clarified
Circular No. 13 dated 22nd
February 2000
It has been
reported to the Board that exemption from 10% CVD under zero duty EPCG Scheme in
terms of customs notification number 29/ 97-Cus. Dated 1.4.97 has been extended
by some Custom Houses even to machines like knitting/ dyeing/ compacting etc.
i.e. machines which are used in the manufacture/ processing of fabrics and not
garments.
2. In
terms of proviso to paragraph 1 of notification number 29/ 97-Cus. Dated
1.4.97,CVD exemption is, inter alia, available only to machines, which are used
in the manufacture/ processing of textile garments (including knitwear�s).
Hence if a garment exporter imports machines which are not used for the
manufacture/ processing of garments, CVD exemption would not be available to
such machines which process fabrics.
3. It
is therefore re-iterated that CVD exemption in terms of customs notification
number 29/ 97 dated 1.4.97 (issued under Zero duty EPCG Scheme) should only be
extended to machines which are directly used in manufacture/ processing of
textile garments (including knitwear�s). In past cases where such benefit has
been wrongly extended, SCN -Cus -demands should be issued immediately. Cases of
provisional assessment if any, should also be finalised on the above basis.
4. Board should be
kept apprised of the action taken in the matter.
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