|
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Trade Notice No 10/2016
Dated 20th July, 2016
To
All RA's
Members of Trade
Subject: Closure Of EPCG authorizations in case of supplies to SEZ units which
have been made prior to 01.4.2015 and where exports proceeds have not been
realized through Foreign Currency Account (FCA) of the SEZ unit.
Attention is invited to Para 5.7.2 of HBP 2009-14. Para 5.7.2 of HBP 2004-09 (RE
: 2008) and the relevant Paras of the earlier policies Para 5.7.2 stipulates as
under
"Export proceeds shall be realized in freely convertible currency except for
deemed exports. Exports to SEZ units/Supplies to developers / Co-developers,
irrespective of currency of realization would also be counted for discharge of
Export obligation"
2. The matter has been examined. it is reiterated that, Para 5.7.2 of HBP
2009-14 read with relevant Paras of earlier policies did not stipulate that DTA
units supplying goods under EPCG scheme to SEZ units had to realise payment from
Foreign Currency Account (FCA) of SEZ unit, for discharge of Export Obligation.
Moreover Rule 30 (8) of SEZ Rules, 2006 do not stipulate that it is mandatory
for SEZ units to make payment to EPCG authorisation holders from Foreign
Currency Account (FCA) of the unit.
3. It has been decided, in consultation with SEZ Division of Department of
Commerce, that closure / redemption / EODC may be allowed in cases where EPCG
authorisation holder has made supplies to SEZ units and has not realised the
proceeds from the Foreign Currency Account (FCA), in case of supplies which have
been made prior to 1.4.2015.
4. However, it is further clarified that Para 5.11 of HBP 2015-20 under the
current FTP provides that exports to SEZ units /supplies to developers
/co-developers shall be taken in to account for discharge of EO provided payment
is realised from Foreign Currency Account of the SEZ unit. Hence condition of
Para 5.11 of HBP 2015-20 shall have to be complied in respect of EPCG
authorisations issued under FTP 2015 -20. Para 5.11 of HBP shall also be
applicable in respect of EPCG authorizations issued under the earlier policies
but where exports have been made on or after 01.04,2015 or payments have been
realised after 31.03.2015.
5. This issues with the approval of Director General of Foreign Trade.
(Chitra Sharma)
Dy. Director General of Foreign Trade
(Issued from F. No. 18/191/AM-16/Policy-5)
|