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Regarding Import of Consumer Items like Carpets, Crockery, Marble,
Chandelier etc Under EPCG Scheme by Service Providers
Customs
Circular No. 62 dated 26th September 2002
Kind
attention is invited to DOR Circular No. 39/ 2000- Cus. dated 11.5.2000 wherein
it was inter-alia provided that import of consumer items like carpets, crockery,
marble, chandelier etc shall not be allowed under EPCG Scheme by service
providers.
2. MOC&I/ DGFT, DG (Tourism), various
Hotel Association and other individuals have, however, been representing to this
Ministry for quite some time that service providers in the hotel sector actually
need the aforesaid consumer items as well for rendering service and earning
exchange for the purpose of fulfilling export obligation under EPCG Scheme.
Hence, it is not proper to restrict import of aforesaid consumer items to such
service providers. It has been contented that in the case of service providers,
the situation is slightly different because, whereas a manufacturer exporter
fulfils his export obligation under EPCG Scheme by exporting resultant product
manufactured out of imported capital goods/equipments imported under EPCG Scheme
and fulfils his export obligation. The aforesaid rider specified in 39/ 2000 has
also created piquant situation in as much as in many cases DGFT authorities have
issued EPCG licences to service providers permitting import of these consumer
items but Customs have refused to extend EPCG benefits.
3. The issue has been re-examined in Board
and it has been decided that service providers who actually require consumer
items carpets, crockery, marble, chandelier etc shall be allowed EPCG benefits.
Chairman, CBEC has ordered that the rider appearing in DOR Circular No. 39/
2000-Cus. may, therefore, be deemed to be deleted. Import of these consumer
items should also be allowed wherever DGFT authorities have EPCG Licences for
these items and the same is valid to cover imported goods.
4. Standing Order/ Departmental Order for
the information and guidance of the field staff and Trade/ Public Notices for
the trade may be issued and copies of the same forwarded to Board.
5.
Receipt of this Circular may please be acknowledged.
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