Import of consumer items like carpets, crockery, marble, chandelier etc. under EPCG Scheme by service providers - regarding - Customs - 062/02

Circular No. 62/2002-Cus., dated 26-9-2002 F. No. 607/28/2002-DBK Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject: Import of consumer items like carpets, crockery, marble, chandelier etc. under EPCG Scheme by service providers - regarding Kind attention is invited to DOR Circular No. 39/2002-Cus., dated 11-5-2000 [2000 (118) E.L.T. T13] wherein it was inter-alia provided that import of consumer items like carpets, crockery, marble, chandelier etc. shall not be allowed under EPCG Scheme to service providers. 2. MOC I/DGFT, DG (Tourism), various Hotel Associations and other individuals have, however, been representing to this Ministry for quite some time that service providers in the hotel sector actually need the aforesaid consumer items as well for rendering service and earning foreign exchange for the purpose of fulfilling export obligation under EPCG Scheme. Hence, it is not proper to restrict import of aforesaid consumer items to such service providers. It has also been contended that in the case of service providers, the situation is slightly different because, whereas a manufacturer exporter fulfills his export obligation under EPCG Scheme by exporting resultant product manufactured out of imported capital goods, the service provider earns foreign exchange by rendering service through capital goods/equipments imported under EPCG Schemes and fulfills his export obligation. The aforesaid rider specified in 39/2000 has also created a piquant situation in as much as in many cases DGFT authorities have issued EPCG licences to service providers permitting import of these consumer items but Customs have refused to extend EPCG benefits. 3. The issue has been re-examined in Board and it has been decided that service providers who actually require consumer items like carpets, crockery, marble, chandeliers etc. shall be allowed EPCG benefit. Chairman, CBEC has ordered that the rider appearing in DOR Circular No. 39/2000-Cus. may, therefore, be deemed to be deleted. Import of these consumer items should also be allowed wherever DGFT authorities have issued EPCG Licences for these items and the same is valid to cover imported goods. 4. Standing Order/Departmental Order for the information and guidance of the field staff and Trade/Public Notices for the trade may be issued and copies of the same forwarded to Board. 5. Receipt of this Circular may please be acknowledged.