Circular No.ES/144 / 2016-17 October 20, 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,
Kindly refer to SRTEPC Circular No.ES/118/ 2016-17 dated 27.09.2016 wherein the Council informed you regarding a circular issued by CBEC vide No.45/ 2016– Customs dated 23.09.2016 on the same subject.
According to the above circular, the Directorate of Revenue Intelligence (DRI) had detected the instances of simultaneous issuance of zero duty EPCG and SHIS and highlighted the same 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).
Now, the Office of the Principal Commissioner of Customs (Ballard Estate) has issued Public Notice No. 128/ 2016 dated 18.10.2016 on the same subject.
Members may kindly make note of the above.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
