| Date: |
10-11-1999
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| Notification No: |
Customs Circular No 75/1999
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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: |
Regarding Capital Goods imported under EPCG Scheme and kept in the Customs Bonded Warehouse and the EPCG Licence cancelled before clearance of goods – Clarification
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Regarding Capital Goods imported under EPCG Scheme and kept in the
Customs Bonded Warehouse and the EPCG Licence cancelled before clearance of
goods � Clarification
Circular No.
75 dated 10th November 1999
It has come to
the notice of the Board that in a particular case an importer had imported two
consignments of weaving looms under the EPCG scheme. The goods were kept in a
Customs bonded warehouse. Meanwhile, the importer approached the Government to
work under the EOU Scheme. They get the necessary approval from the Ministry of
Industry and thereafter they approached DGFT for cancellation of EPCG Licences.
The EPCG Licences were cancelled as unutilised. In this connection, a doubt has
been raised as to whether the importer should be allowed to switch over to
another scheme without contravening the provisions of notification No.11 O/
95-Cus, dated 5-6-95, under which an obligation has been cast on the importer
under the EPCG Scheme.
2. The
matter has been examined. It is observed that mere issuance of EPCG Licence does
not mean that the provisions of the Scheme have become operational. In this
case, the goods were not cleared under the EPCG Scheme and therefore, it cannot
be held that the importer is liable to penal action for non-fulfilment of
obligations under the said scheme. It is felt that as long as the goods are
under Customs bond, it would be inappropriate to take a view that the importer
has violated the conditions of the notification. Accordingly, it has been
decided that, in a cases where EPCG Licence is cancelled by DGFT as unutilised
and the goods are still lying with the Customs, ex-bonding of goods from the
warehouse may be allowed in the same manner as normal goods subject to
fulfilment of conditions envisaged in the particular scheme under which the
goods are intended to be cleared. In such cases no contravention of the
conditions of the EPCG scheme is construed to have occurred.
3. The above
instruction may be given Wide publicity in the form of Public Notice.
4. Kindly
acknowledge receipt of this Circular. Difficulties, if any, faced in the
implementation of the above instruction, may be brought to the notice of the
Board as an early date.
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