FTP - service provider under Common Service Providers (CSP) in Export Promotion Capital Goods (EPCG) scheme - Clarification
THE issue is whether EPCG authorizations can be issued to a person who does job work for the exporter of goods, as a CSP (Common Service Provider) under para 5.02 read with para 1.35 of Foreign Trade Policy (FTP) 2015-20.
The DGFT clarifies:
In the context of common service providers under the EPCG scheme dealt with in Para 5.02 of the FTP the definition of service provider includes job workers of the type illustrated in the example below.
Example - there may be multiple garment exporters obtaining services at different stages of garment manufacturing (such as knitting, dyeing, compacting, printing, embroidering, labelling, cutting etc.) from a number of other units who own these facilities but do not engage in the export of garments. The arrangement gives flexibility to exporters to not own all the infrastructures for conversion from input to final export products.
DGFT Trade Notice No. 18/2016, Dated: September 23 2016