New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20 - reg. - DGFT - 47/2015-2020

Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Public Notice No. 47/2015-2020 New Delhi 6th December, 2017 In exercise of powers conferred under Paragraph 1.03 of the Foreign Trade Policy, 2015-2020 , the Director General of Foreign Trade hereby notifies new Appendices 5E (Computation of Annual Average Export Obligation under EPCG Scheme) and 5F (List of Capital Goods not permitted/ permitted subject to specific conditions for import under EPCG Scheme) of FTP 2015-20 , as contained in Annexure to this Public Notice. Effect of this Public Notice : New Appendices 5E and 5F of FTP 2015-20 , are being notified. (Alok Vardhan Chaturvedi) Director General of Foreign Trade e-mail: [email protected] (Issued from F. No. 18/03/AM-15/P-5) APPENDIX - 5E COMPUTATION OF ANNUAL AVERAGE EXPORT OBLIGATION UNDER EPCG SCHEME (PARA 5.04 (b) OF FOREIGN TRADE POLICY 2015-20 READ WITH PARA 5.12 OF HBP 2015-20). The average Export Obligation under EPCG scheme shall be fixed as under: (i) In respect of EPCG authorizations issued to an applicant during a licensing year, the Average Export Obligation will be same for same and similar products. While calculating Average Export Obligation, exports counted/being counted for fulfilling specific EO against EPCG Authorisations within valid EO Period (whether original or extended) that have been made in the preceding 3 years will not be taken into account. (ii) If an applicant has been in existence for more than 3 years, the exports in each of the past 3 years (even if for some years, it may be zero) are aggregated and the aggregate export is divided by 3. (iii) If an applicant has been in existence for less than 3 years, the denominator in the above calculation will be the number of year and not 3. The following table illustrates the fixation of average Export Obligation (in case a firm/company has applied for EPCG authorizations in the year 2017-18). Firm/Company in existence for more than 1 year but less than 2 years Year 1 (2016-17) Year 2 (2015-2016) Average Export Obligation Exports Nil Not Applicable Nil x Not Applicable X/1 Firm/Company in existence for more than 2 year but less than 3 years Year 1 (2016-17) Year 2 (2015-2016) Average Export Obligation Exports Nil Nil Nil Nil x X/2 x Y X-Y/2 APPENDIX- 5F LIST OF CAPITAL GOODS NOT PERMITTED I PERMITTED FOR IMPORT SUBJECT TO SPECIFIC CONDITIONS UNDER THE EPCG SCHEME (PLEASE SEE PARA 5.01 OF FTP 2015-20) Sr. No. Name of Item Importability under EPCG Scheme 1. Cables Permitted only as an integral part of Capital Goods. 2. Railway wagons (excluding specialized wagons Not permitted 3. Tractors Not permitted. 4. Trucks / Tippers I Dumpers and spares thereof including tyres. Permitted only to mining sector. 5. Motor Cars, Sports utility Vehicle / All purpose vehicles Not permitted. 6. Air port Ground Handling Equipments Not permitted. 7. Furniture, carpets, crockery, marble, chandelier, tiles, flooring, doors for rooms, fixing panels. Permitted only to Hotel Industry. 8. Construction equipments viz. Cranes etc. Permitted only for providing services. 9. All construction material like sheds, cement, steel. Not permitted. 10. Computers and printers Not permitted. 11 All Second Hand Capital Goods Not permitted. 12. Capital Goods (including Captive plants and Power Generator Sets of any kind) for export of electrical energy (power); Supply of electrical energy (power) under Chapter 7; Supply of power (energy) in their own unit, and Supply/export of electricity transmission services. Not permitted 1 [ 13 Pre-fabricated Polyurethane Foam (PUF) panels/doors Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Processing Units for storage of pre-frozen and frozen marine products respectively, meant for exports under the EPCG Scheme. 14. Furniture and fixtures, flooring materials and furnishing materials. Permitted for hospitals ] 2 [ 15. Pre-fabricated Polyurethane Foam (PUF) panels/doors Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Units for storage of fresh fruits and vegetables, meant for exports under the EPCG Scheme. ] ************ Notes 1. Inserted vide Public Notice No. 61/2015-20 dated 18-12-2018 2. Inserted vide Public Notice No. 71/2015-20 dated31-01-2019