Circular No.ES/118/ 2016-17 September 27, 2016
To: Members of the Council
Sub: Incorrect simultaneous issuance of dual benefit of Zero duty Export Promotion Capital Goods Scheme (EPCG) and Status Holder Incentive Scheme (SHIS) to exporters under the FTP 2009-14 – option providing flexibility to return either benefit
Dear Member,
This is to inform you that the Central Board of Excise & Customs has issued Circular No.45/ 2016– Customs dated 23.09.2016 on the above subject.
In this regard, instances of simultaneous issuance of zero duty EPCG and SHIS were detected by Directorate of Revenue Intelligence (DRI) and highlighted to the DGFT. Subsequently, the Comptroller and Auditor General (CAG) of India also mapped the concurrent availing of SHIS and zero duty EPCG not being in line with FTP 2009-14 provisions. The issue revolves around wordings in para 5.1A HBP (27.08.2009), para 5.1(f) FTP (5.6.2012), para 5.1(b) FTP (18.4.2013), para 3.10.3 and 9.3 (HBP).
For more information, you may download the above Circular.
Members may kindly make note of the above.
Thanking you,
Yours faithfully,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
