FTP - simultaneous benefits of Zero Duty EPCG and SHIS - DGFT Clarifies
DGFT has received references from Directorate of Revenue Intelligence and various exporters, on the subject of incorrectly issued simultaneous benefits of Status Holder Incentive Scheme (SHIS) and Zero Duty EPCG Authorization under Foreign Trade Policy 2009-14.
The issue involves Para 5.1(b) of FTP and Para 3.10.3(b) of HBP 2009-14. The representations have been examined by DGFT in consultation with Department of Revenue and it has been decided that exporters who have been issued or availed such simultaneous benefit of these schemes shall be allowed flexibility to choose one of the two schemes subject to certain conditions.
No penal action in cases of incorrect issuance: On account of different interpretations on the issue in the past, it has been decided in consultation with DoR that any erroneous issuance of SHIS/Zero Duty EPCG Authorisation will be considered bonafide error and no penal action shall be taken against exporters by RAs / field formations of Customs, including DRI.
Consequential Action by CBEC: The CBEC would be issuing a separate Circular for guidance of its field formations.
DGFT Public Notice No. 30/2015-2020., Dated: September 08 2016