Government of India
Ministry of Commerce and Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
(EPCG-I Section)
Circular No. 12 /(RE-2010) 2009-14
Dated: 17 .01.2011
Subject:- Clarifications on issues pertaining to
EPCG Scheme raised in the Port Officers’ Meeting held on 03.12.2010.
Apropos the discussions in ‘Port Officers’ meeting held on 03.12.2010
wherein, among others, a number of issues relating to EPCG Scheme were raised by
Regional Authorities. The issues are clarified as under:
| Sl. No. |
Issues |
Clarification |
| 1. |
What are the criteria adopted for issuance of ‘No Objection
Certificate’ for conversion/disposal off vehicles imported against EPCG
authorizations? |
The vehicles imported against EPCG authorizations issued prior to
31.03.2007 can be allowed for conversion / disposal after issuance of
EODC; completion of five years from date of import; and there is no
DRI/CBI case against the subject authorization.
The vehicles imported against EPCG Authorizations issued on or after
01.04.2007 can be allowed after fulfillment of export obligation, i.e.
after complying with the ‘Actual User Condition’ as per Para 5.4 of FTP.
However, the capital goods for which exemption has been granted from
maintenance of annual average export obligation under Para 5.7.6 of
HBP.Vol.I, can be allowed after fulfillment of export obligation and on
completion of five years from the date of import of the said Capital
Good. |
| 2. |
Whether 10% restriction is applicable on import of spares on 100%
export obligation also? |
Para 5.2 of FTP allows import of spares without limit of 10% subject
to 100% export obligation. |
| 3. |
Whether EODC can be issued against an individual licence in case of
pending investigation by CBI/DRI in respect of other licence (s) of the
firm/company? |
This depends on the gravity of the allegations. Therefore, decision
in such cases should be taken by Head of Office, depending upon the
merits of each case. |
| 4. |
Whether EODC can be issued in cases in which vehicles were not
registered as tourist vehicle upto 31.08.2008 as per Policy Circular No.
7 dated 07.05.2008? |
EODC can be issued without insisting for registration of such
vehicles as tourist vehicles under the provisions of Circular No. 7
dated 07.05.2008, in such cases in which complete documents for
fulfillment of export obligation were submitted on or before 30.06.2008
and in which the complete export obligation had been fulfilled but EODC
could not be issued due to minor discrepancies or on technical grounds. |
| 5. |
Whether Soyabean Meal / Extraction can be treated as Agricultural
Product for the purpose of Para 5.7.6 of HBP Vol.I regarding exemption
from maintenance of annual average export obligation? |
The processed foods cannot be treated as Agricultural Product. |
| 6. |
Whether Readymade garments made out of yarn supplied by EPCG licence
holder can be accepted for fulfillment of EO against EPCG Authorization?
|
It cannot be accepted for EO fulfillment against the authorization
obtained by the Yarn Supplier unless supplies are covered under Chapter
8 of FTP/HBP.Vol.I as the linkage of supplies to garment manufacturer
cannot be established otherwise. |
| 7. |
Whether EPCG Authorizations can be issued for import of Crank Manual
Bed and ICU? |
EPCG authorization can be issued for import of Crank Manual Bed and
ICU as the Scheme allows import of capital equipment for use by the
service sectors including hospital services, as per Appendices 10A of
HBP Vol.I. |
| 8. |
Whether maintenance of annual average export obligation is required
to be maintained licensing year-wise or calendar year-wise?
|
Annual average export obligation is required to be maintained
licensing year-wise. |
| 9. |
Whether pending nexus cases may be disposed of on the basis of
Chartered Engineer Certificate? |
Pending nexus cases may be decided with the help of Chartered
Engineer Certificate as approved by EPCG Committee in its Meeting held
on 03.11.2010. |
2. This issues with the approval of DGFT.
Sd/-
(Hardeep Singh)
Jt. Director General of Foreign Trade
E-mail: [email protected]
6/218/73/AM-11/EPCG-I
To: All Regional Authorities