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Date: 23-02-2012
Notification No: DGFT Policy Circular No 54(RE-2010)/2009-14
Issuing Authority: DGFT  
Type: Circular
File No: File No. 01/36/218/155/AM-12/Pol. V/EPCG-I
Subject: Import of spares for the existing machinery procured indigenously under EPCG Scheme

Government of India
Ministry of Commerce and Industry
Department of Commerce
(Directorate General of Foreign Trade)
[ISO 9001:2008 Certified Organisation]
Udyog Bhawan, H-Wing, Gate No. 2,
Maulana Azad Road, New Delhi-110011
Tel. (EPBAX No.): 011-23061562
Fax No: 011-2306 2225
Web Site: http://dgft.gov.in
E-mail:
[email protected]

Dated 23/02/2012

Policy Circular No. 54 (RE-2010)/2009-14

To,

All Regional Offices of DGFT

Subject: Import of spares for the existing machinery procured indigenously under EPCG Scheme

Issue of allowing import of spares against Capital Goods procured indigenously against an EPCG Authorization was discussed during the last Port Officers Meeting held on 24-25th November, 2011 wherein it was decided that the matter would be examined separately.

2. The matter has since been examined. Para 5.2A of Foreign Trade Policy stipulates two options for import of spares for imported Capital Goods

i. Capital Goods have been earlier imported under EPCG; Spares for these Capitals Goods are allowed under EPCG Scheme.

ii. Capital Goods have been imported (though EPCG Scheme was not availed for such imports); Spares for these are allowed under EPCG Scheme.

Accordingly, it is clarified that for all types of imported Capital Goods, import of Spares under EPCG Schemes is allowed.

3. Under Para 8.2 (c) of Foreign Trade Policy, Capital Goods can be procured indigenously upon invalidating an EPCG Authorization. However, domestically procured Capital Goods cannot be treated as ‘imported Capital Goods’ and hence the facility of Para 5.2A of Foreign Trade Policy cannot be allowed for such Capital Goods sourced domestically after invalidating EPCG Authorization.

4. This issues with the approval of Director General of Foreign Trade.

Sd./-
(Rita Mahna)
Deputy Director General of Foreign Trade
Tel. No. +91 11 2306 1562 / Ext. 288
E-mail: [email protected]
(Issued from File No. 01/36/218/155/AM-12/Pol. V/EPCG-I)

       

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