Customs - Incorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS - CBEC Clarifies
INSTANCES of simultaneous issuance of zero duty EPCG and SHIS (Status Holder Incentive Scheme) were detected by DRI and highlighted to the DGFT. Subsequently, the CAG of India also mapped the concurrent availing of SHIS and zero duty EPCG not being in line with FTP 2009-14 provisions.
DGFT had in Public Notice No. dated 8.9.2016 clarified, (DDT 2927 09 09 2016)
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.
The CBEC has now issued the Circular and directs that pending issues related to the simultaneous issuance or availing of zero duty EPCG/Post Export EPCG and SHIS shall be decided in terms of the said Public Notice.
Consequently, a Notification has been issued which suitably amends Notification Nos. 104/2009-Cus, 16/2015-Cus and 17/2015-Cus.
CBEC Circular No. 45/2016-Customs., Dated: September 23 2016
Notification , Dated: September 23 2016