Notification of procedure to be followed in cases of incorrectly issued simultaneous benefits of Zero Duty EPCG and SHIS in FTP 2009-14 by the Director General of Foreign Trade

Circular No.ES/ 90 /2016-17                                                            September 09, 2016

To: Members of the Council

Sub: Notification of procedure to be followed in cases of incorrectly issued simultaneous benefits of Zero Duty EPCG and SHIS in FTP 2009-14 by the Director General of Foreign Trade in exercise of powers conferred under Para 2.04 of the Foreign Trade Policy 2015-2020.

 Dear Sir,

This is to inform you that the Directorate General of Foreign Trade has issued Public Notice No. 30/2015-2020 dated 08.09.2016 on the above subject.

In this connection, we would like to inform you that DGFT had 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 this Directorate 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 the extent specified in this public notice, to choose one of the two schemes. The option to return either benefit shall be subject to the following:-

1. Return of SHIS 
2. Return of zero duty EPCG/ Post Export EPCG
3. Mode of payment
4. Time Frame
5. No penal action in cases of incorrect issuance
6. Consequential Action by CBEC

For more information, you may refer to the Public Notice.

Members are requested to make note of the above.

Thanking you,

Yours faithfully,

V. ANIL KUMAR
EXECUTIVE DIRECTOR