Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
CIRCULAR NO. 84 (RE:2008)/2004-09
Dated the 30th April, 2009
To
All RA’s
Subject: Terms and conditions for issue of EPCG authorizations to EOU units
after conversion to DTA unit-Regarding
Attention is invited to Circular No.79 dated 1.4.2009 regarding terms and
conditions for issue of EPCG authorizations to EOU units after conversion to DTA
unit. The matter has been reviewed in light of Policy Circular No.35(RE:99)
dated 1.10.99 (copy enclosed). Sub-Para 2 (b) of Circular No.79 dated 1.4.2009
is clarified to read as under:
- If a standalone EOU / EPZ unit wishes to debond from EOU to EPCG Scheme,
there shall be no export obligation for maintenance of average and the unit
shall be required to maintain only additional export obligation equivalent to
six/eight times of the depreciated value.
- In case one unit of a firm / company opts to debond from EOU to EPCG
Scheme, while other unit(s) are DTA units, then the average export obligation in
respect of the licences issued to the firm / company (other than debonding unit)
shall remain unchanged and the average EO after debonding of the unit shall be
fixed by excluding the exports made by the debonded unit from the total exports
of the firm / company, which runs concurrently for all the units of the firm /
company. In such a case, an additional EO equivalent to six/eight times of the
depreciated value would be imposed on the debonding unit shifting to the EPCG
Scheme.
This issues with the approval of DGFT.
(Akash Taneja)
Joint Director General of Foreign Trade
F. No. 01/36/218/88/AM09/EPCG-I
Government of India
Ministry of Commerce
Directorate General of Foreign Trade
(P.C.IV Division)
Policy Circular No. 35 (RE-99)/99-2000
Dated 1.10.99
To,
ALL LICENSING AUTHORITY
ALL COMMISSIONER OF CUSTOMS
Subject: Debonding of EOU/EPZ units under EPCG Scheme.
Attention is invited to paragraph 9.27 of the policy read with paragraph 6.7 of
the Handbook (Vol.1) relating to option available to EOU/EPZ units to debond the
capital goods under the EPCG scheme.
It is clarified that units debonding capital goods under EPCG scheme are
required to execute BG/LUT with the licensing authority as per the provisions
given in the HandBook (Vol.I). The BG/LUT is to be submitted alongwith the
application for debonding under EPCG scheme.
The issue of fixation of export obligation in such cases has also been examined.
It is clarified that where one unit of the firm/company opts to debond under
EPCG scheme, the average export obligation in respect of the licence issued to
the firm/ company (other than the debonding unit) shall remain unchanged. On the
debonding unit, the average export obligation shall be fixed by excluding the
exports made by the debonding unit from the total exports of the firm/company
which runs concurrently for all the units of the firm/company. Moreover, an
additional export obligation equivalent to 6 times or 8 times of the depreciated
value may be imposed on the unit debonding under EPCG scheme as the case may be,
depending on the scheme in which unit opts for debonding.
However, if a standalone EOU/EPZ unit wish to debond under EPCG scheme, there
shall be no export obligation for maintenance of the average the only such an
obligation under EPCG scheme on a standalone unit shall be imposed which may be
equivalent to 6 times or 8 times of the depreciated value, as the case may be,
depending upon the scheme in which the unit opts for debonding.
This issues with the approval of DGFT.
(A.K.Srivastava)
Dy.Director General of Foreign Trade
(F.No.01/94/180/197/AM00/PC-IV)