OFFICE OF THE
COMMISSIONER OF CUSTOMS (EXPORT),
JAWAHARLAL NEHRU
CUSTOM HOUSE, SHEVA,
TAL – URAN, DIST – RAIGAD,
F. No. S/26-Misc- 86 / 2008 EPCG
JCH Date : 01.10.2009
FACILITY NOTICE NO. 79/ 2009
Subject
: Procedure
to be followed in case of EPCG scheme – reg.
Attention of all Importers / Exporters
/ CHA’s and EPCG Licence
Holder and all concerned is invited to procedure to be followed under Facility
Notice No. 50/2006 dated 08.08.2006, 01/2007 dated 02.01.2007 and 25/2008 dated
13.03.2008 and Board’s Circular Nos.
38/97-Cus. dated 19.09.1997 & 24/2002 dated
06.05.2002, 58/2004 dated 21.10.2004 17/2009-Cus. dated
25.05.2009 and Customs Notification No. 44/2002 dated 19.04.2002 and 64/2008
dated 09.05.2008 in case of EPCG scheme. Keeping in view the changes that have
been brought over the years in the Foreign Trade Policy and circulars and
notifications issued by the Board from time to time, the following procedure
shall hence forth be followed in respect of imports made under EPCG scheme.
2. Pre Import Stage Compliance
:
2.1 Registration
of Licence :
The EPCG Licence Holder will submit Request
Letter / Authority Letter for registration of licence,
the licence in original, Bond in prescribed format,
bank guarantee as applicable.
2.2 The
Bond shall be submitted in the prescribed format as per Board’s Circular No.
58/2004 dated 21.10.2004 and shall cover the duty ordinarily leviable on the goods but for the exemption and also
interest @ 15% per annum thereon.
2.3 Execution of BG :
(a) The Bank
Guarantee should be submitted along with covering letter of the Bank as per the
norms prescribed in Board’s Circular No. 58/2004 dated 21.10.2004 as amended
vide circular no. 17/2009 dated 25.5.2009.
(b) If the licence holder is availing BG exemption in terms of para 3.1 (a) (b) (c) (d) (e) of the Board’s Circular No.
58/2004 dated 21.10.2004, as amended vide circular no. 17/2009 dated 25.5.2009,
he shall submit the proof of export performance or payment of duty, as the case
may be, duly certified by the jurisdictional Superintendent of Central Excise
in case he is registered with the Central Excise. In cases where the
exporter is not registered with the Central Excise, but he is a registered
member of an Export Promotion Council, he shall produce a certificate from the
concerned Export Promotion Council. In other cases the exporter shall produce a
certificate duly authenticated by a practicing Chartered Accountant, who is
registered with the Central Excise Department for payment of service tax, along
with evidences of export to the satisfaction of the Assistant Commissioner or
Deputy Commissioner. The Chartered Accountant issuing the certificate
will mention his STC code and other registration details in the certificate.
(c) The licence holder claiming to fall under the category of
“Other Manufacturer Exporter” in terms of Para 3.1(f), as eligible for
execution of BG at the rate of 15% of duty saved amount with EPCG section
should submit any one of the following documents as prescribed in Facility
Notice No. 01/2007 dated 02.01.2007 :-
(i)
Permanent Central Excise Registration Certificate duly
certified by Jurisdictional Supdt. of
Central Excise with Pan Card.
(ii)
Permanent S.S.I. Registration Certificate issued by
District Industries Centre with Pan Card (Mere acknowledgment is not
sufficient).
(iii)
Permanent Registration Certificate issued by Secretariat
for Industrial Assistance,
(iv)
Any other Registration Certificate as a proof of manufacturer
exporter status along with previous Export Performance certified by Chartered
Accountant / any Export Promotion Council with Pan Card.
(d) Units in Agri
Export Zones (AEZ), eligible to furnish BG at the rate of 15% of duty saved amount under EPCG, would
furnish requisite documents regarding their status as AEZ unit.
(e) Established
service provider who have foreign exchange earning of Rs. 50 lakhs or more
during the previous financial year and have a clean track record, entitled to furnishing BG
at the rate of 15% of duty saved amount under EPCG, shall produce
a certificate by a practicing Chartered Accountant, who is registered
with the Central Excise Department for payment of service tax, evidencing
foreign exchange earning in the previous financial year or any other
document evidencing foreign exchange earning to the satisfaction of the Assistant Commissioner
or Deputy Commissioner.
(f) Service providers in the port handling
sector who are appointed as Custodian by the jurisdictional Customs / Central
Excise authorities, entitled to furnishing BG at the rate of 25% of the duty
saved amount under EPCG, shall produce copy of a document evidencing their
appointment as custodian by the said jurisdictional authorities.
(g) All other licence
holders are required to file BG of 100% of duty saved amount.
2.4 The Bond / BG shall be filed for a minimum
period of 3 years with an undertaking to keep the BG alive for the entire
period of export obligation viz. 8 + 2 = 10 years or 12 + 2 = 14 years etc.
Further, all BG should contain an unconditional self renewal clause /
undertaking from the Bank to keep the BG alive, till the bond for which the
bank guarantee is being given is fully discharged by the Asstt.
/ Dy. Commissioner of Customs. There should be no over
riding clause. However, in case where BG is for 8 + 2 =
10 years 12 + 2 =
14 years, as the case may be, the self renewal clause of bank would not be
required.
2.5 The facility of filing “Corporate Guarantee”
as provided in DOR Circular No. 38/97-Cus. dated
19.09.97 shall be available subject to fulfillment of conditions specified in
the circular.
2.6 Further, the licence
holder, who wish to avail BG exemption as specified in para
2.3 above, shall furnish an affidavit that he has not defaulted on the export
obligation in respect of any Advance licence / EPCG licence issued to him in the past and he has not been
penalized under the provisions of the Customs Act, 1962, the Central Excise
Act, 1944. The Foreign Exchange Management Act (FEMA), 1995
or the Foreign Trade (Development and Regulation) Act, 1992 during the previous
three financial years.
3. Post Import Compliance :
3.1. The capital goods imported, assembled or manufactured are
to be installed in the importer’s factory or premises and a certificate from
the jurisdictional Dy. Commissioner of Central Excise
or Asstt. Commissioner of Central Excise, as the case
may be, shall be produced confirming installation and use of capital goods in
the importer’s factory or premises, within six months from the date of
completion of imports or within such extended period as the Dy.
Commissioner of Customs or Asstt. Commissioner of
Customs, as the case may be, may allow. If the importer is not registered with
central excise or if he is a service provider, as the case may be, he may
produce said certificate of installation and usage issued by an independent
chartered engineer.
3.2. In case of requisite certificate is not
produced by the importer within stipulated period, proceedings would be intitated for recovery of customs duty as applicable on
such imports but for the exemption availed under EPCG scheme.
3.3. Export Obligation performance
: In terms of Notification No. 44/2002 dated
19.04.2002, 97/2004 dated 17.09.2004, 64/2008 dated 09.05.2008, the importers
under the EPCG Licence Scheme have to submit evidence
of their block year wise export obligation performances within 30 days or such
extended period, that Assistant Commissioner / Deputy Commissioner may allow,
from the expiry of the block period. In the context the importer shall produce
following documents as evidence of their export performance after expiry of
each block year, as mentioned in the licence, within
the prescribed period of 30 days :-
1. Original EPCG Licence
2. Duty debit sheets in original
3. Self attested copies of Shipping Bills
& export invoices along with an
statement
showing shipping bill wise details, particularly FOB amount.
4. Bank Realization
Certificates
5. Any other documents required by Group AC.
3.4. In the event of failure to produce to export
obligation performance by the importer within stipulated period (including the
further period that may be allowed by the Assistant/Deputy Commissioner), the
importer shall be liable to pay duty in the manner as prescribed in the
exemption notification, failing which proceedings would be initiated for
recovery of customs duty, as applicable to the imports but for the concession
under EPCG scheme.
4. Cancellation
of Bond / BG : After completion of entire export
obligation as specified in the license, and on submission of EODC, as received
from DGFT, the bond (LUT) and bank guarantee, if any, will be cancelled and
released to the licence holder or his authorized
representative, within a period of one month from the date of submission of
EODC. However, in doubtful cases or where investigations have been launched by
Customs or other Agencies, BG release would be subject to suitable corrective
action under the law.
5. All
pending cases, where export obligation has not yet been fully discharged, would
be dealt in the manner as prescribed in this facility notice.
6. Any difficulties
faced by the Trade in implementation of this facility notice may be brought to
the knowledge of the undersigned immediately.
(B. K. Sinha)
Commissioner of Customs (Exports)