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Amendment in Para 5.25 of HBP 2015-20 of the Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015-20

Circular No.ES/177/2017-18                                                           October 13, 2017  

To: Members of the Council

Sub: Amendment in Para 5.25 of HBP 2015-20 of the Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015-20

Dear Member,

With reference to the above, vide Public Notice No. 29/ 2015- 2020 dated 09.10.2017, DGFT has made amendments in Para 5.25 regarding Re- Export / Replacement of Capital Goods Imported under EPCG Scheme of  Chapter 5 (Export Promotion Capital Goods (EPCG) Scheme) of   Handbook of Procedures (HBP) of FTP 2015-20, with immediate effect.

In this regard, please note that the changes /additions which were made by DGFT (indicated in underlined/  bold letters) are given below for your information and ready reference.

Existing Paragraph

Revised paragraph

Re-Export/ Replacement of Capital Goods Imported under EPCG Scheme

a). Capital Goods imported under EPCG scheme, which are found defective or unfit for use, may be re-exported to foreign supplier within three years from the date of clearance by Customs of such goods, with permission of RA / Customs Authority. Consequently, EO would be re-fixed.

(b). Capital Goods imported and found defective or otherwise unfit for use may be exported, and Capital Goods in replacement thereof be imported under EPCG scheme. In such cases, while allowing export, the Customs shall credit the duty benefit availed which can be debited again at the time of import of such replaced Capital Goods.

 

 

 

Re-Export/Repair/Replacement of Capital Goods Imported under EPCG Scheme

a). Capital Goods imported under EPCG scheme, which are found defective or unfit for use, may be re-exported to foreign supplier within three years from the date of clearance by Customs of such goods, with permission of RA / Customs Authority. Consequently, EO would be re-fixed.

(b). Capital Goods imported and found defective or otherwise unfit for use may be exported, and Capital Goods in replacement thereof be imported under EPCG scheme. In such cases, while allowing export, the Customs shall credit the duty benefit availed which can be debited again at the time of import of such replaced Capital Goods.

(c). Capital Goods imported under EPCG Scheme, may be re-exported for repairs abroad within three years from the date of clearance by Customs of such goods, with permission of RA/Customs Authority. The duty component on the expenditure incurred on the repairs as well as the insurance and the freight, both ways shall be taken into account for re-fixation of the EO.

Members may kindly make note of the above amendments.

Thanking You,

SRIJIB ROY
ADDITIONAL DIRECTOR

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