EPCG Scheme - DGFT Clarifications
THE DGFT has clarified a number of issues relating to EPCG Scheme, raised at a recent meeting of the Port Officers. Some of the important clarifications are:
Vehicles imported under EPCG – Issue of ‘No Objection Certificate ': 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 Goods.
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.
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.
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.
DGFT CIRCULAR NO. 12/( RE-2010) 2009-14, Dated: January 17, 2011