Regarding import of irrigation equipment for use in contract farming
under EPCG Scheme and for export of agro products
Circular No. 69dated 8th September 1998
A copy of Notification No. 13(RE: 98) 1997-2002
dated 14.8.1998 regarding the above subject issued by the DGFT is enclosed. This
Notification is issued with a view to enabling the importation and use of
irrigation equipments under EPCG for export of agro-products. It may also be
imported by EPCG Licence holder and installed in the premises of a contract
manufacturer, of a supporting farmer's premises, where the equipment will be
located and put to use.
2. In this regard
attention is also invited to Notification No. 42/ 98-Customs dated 30. 6. 1998.
This notification has amended the four existing EPCG Notification No. 110/
97-Cus. and 111/95-Cus. both dated 5. 6. 1995 and 28/ 97-Cus. and 29/97-Cus.
both dated 1. 4. 1997 so as to inter alia provide that in case of import of
capital goods under EPCG Scheme, a certificate from the Chartered Engineer
confirming installation and use of such capital goods in importers premises is
furnished to the Assistant Commissioner of Customs. In cases where the importer
wants to put the imported irrigation equipment in to use at other premises for
contract farming in terms of DGFT's Notification No. 13 (RE: 98) 1997-2002, the
importer shall submit:-
(i) a list containing
the full name and address of the person (s)/ premise (s), to the Assistant
Commissioner of Customs where the equipments will be installed and used;
(ii) furnish a certificate
from the Chartered Engineer to the effect that the irrigation equipment has been
installed for use in declared premises for manufacture and export of agro
products and will not be moved to any premises other than those mentioned in the
list and certified by the Chartered Engineer;
(iii) the above facility will be
available provided that the ownership of the imported irrigation equipment rests
with the EPCG Licence holder who will undertake in the Bond/ LUT not to transfer
or sale the equipment till the Export Obligation is fulfilled.
3.
Customs Houses may issue suitable standing orders for the guidance of the
staff.
Notification No. 13 dated the 14th August, 1998
In exercise of powers conferred by Section 5 of the
Foreign Trade (Development and Regulation) Act, 1992 (No. 22 ot 1992) read with
Paragraph 1. 3 of the Export and Import Policy, 1997-2002 (incorporating
amendments made up to 13. 4. 1998), the Central Government hereby makes the
following amendments in the Export and Import Policy, 1997-2002, (incorporating
amendments made up to 13. 4. 1998).
Paragraph 6. 3 (a) may be amended to read as
follows:
"Under the Scheme, manufacturer exporters,
merchant exporters tied to supporting manufacturer (s) and service providers are
eligible to import capital goods. For agricultural exports, import of irrigation
equipments may be allowed provided ownership of these equipments rest with the
EPCG licence holder, such equipments are not sold or leased and list of places
where the equipments are to be located in made available to the jurisdictional
Asst.
2.
This issues in Public interest.
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