Treatment of Capital Goods sourced from SEZ and import of spares for such Capital Goods under EPCG Scheme – Para 5.2A of FTP– reg. - DGFT - 65 (RE-2010)/2009-14

Government of India Ministry of Commerce and Industry Department of Commerce (Directorate General of Foreign Trade) [ISO 9001:2008 Certified Organisation] Udyog Bhawan, H-Wing Maulana Azad Road, New Delhi-110011 Tel. (EPBAX No.): 011-2306 1562 Fax No: 011-2306 2225 Web Site: http://dgft.gov.in E-mail: [email protected] ***** Policy Circular No. 65 (RE-2010)/2009-14 Dated 18/05/2012 To, All Regional Offices of DGFT Subject: Treatment of Capital Goods sourced from SEZ and import of spares for such Capital Goods under EPCG Scheme Para 5.2A of FTP reg. ----- Kind attention is invited to Policy Circular No. 54 dated 23.02.2012. A question has arisen whether the Capital Goods sourced from Special Economic Zone (SEZ) would be treated as imported goods and whether spares for such Capital Goods may be imported under the EPCG Scheme Para 5.2A of FTP. 2. The matter has been examined and it is clarified that Capital Goods sourced from SEZ are treated as imported goods . Hence, EPCG Scheme-under Para 5.2A is available for import of spares for such imported Capital Goods (i.e. sourced from SEZ) with reduced EO. Besides this, EPCG Authorization for Spares is also allowed under Para 5.2 {as clarified in Policy Circular No. 12 dated 17.01.2011 (Point No. 2)}. 3. This issues with the approval of Director General of Foreign Trade. (Rita Mahna) Deputy Director General of Foreign Trade Tel. No. +91 11 2306 1562/Ext. 288 E-mail: [email protected] (Issued from File No. 01/36/218/ 11/AM-13 /EPCG-I)