Policy Circular No. 17 dated 14^th July 2000

Attention is invited to the Customs Notification No. 60/ 98-Customs dated 3^rd August 1998 read with the Customs Notification No. 31/99 dated 8^th March 1999, which provides that �hotel industry and tourism industry� is entitled for the import of �motor cars/ sports utility vehicles/ all purpose vehicles� as per the guidelines stated therein. The word and expression �Tourism industry� means travel agents, tour operators or tourist transport operators, who are certified as Export House or Trading House or Star Trading House or Super Star Trading House, in terms of Notification No. 33 dated 26^th November, 1998. In this context it is clarified that in the event of a travel agent, tour operators or tourist transport operator applying for the import of motor cars/ sports utility vehicles/ all purpose vehicles under EPCG Scheme, the licence, if issued, shall be subject to the execution of bank guarantee (BG) by the licencee, to the extent of 100% of the duty saved amount, irrespective of the status of the applicant or any notification issued in this regard.

2.     Regarding the erstwhile zero duty EPCG Scheme, it is clarified that, no enhancement in the CIF value of the licence shall be considered by the Licencing Authorities in respect of licences issued under the scheme. Any change in the import items, incorporation of new item, deletion of any old item etc. may, however, be allowed in respect of zero duty EPCG licences, provided the CIF value of such licences is not exceeded.