Incorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14 option providing flexibility to return either benefit - Customs - PUBLIC NOTICE NO.41/2016

OFFICE OF THE COMMISSIONER OF CUSTOM (EXPORT) EPCG SECTION, AIR CARGO COMPLEX ANDHERI (EAST) MUMBAI-400 099 F.NO.S/40-EPCG-127/2012-13/EPCG/ACC Date: 25.10.2016 PUBLIC NOTICE NO.41/2016 Sub: Incorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14 option providing flexibility to return either benefit. Attention of all the members of Trade, Air Cargo Complex Brokers and other stakeholders is invited to CBEC Circular No.45/2016-Customs dated 23.09.2016 on the above mentioned subject. 2. Instances of simultaneous issuance of zero duty EPCG and SHIS were detected by DRI and highlighted to the DGFT. Subsequently, the 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 wording in para 5.1A HBP (27.08.2009), para 5.1(f) FTP (05.06.2012), para 5.1 (b) FTP (18.04.2013), para 3.10.3 and 9.3 (HBP) 3. After inter-Departmental consultations, that also took into account wording in conditions specified in Customs EPCG/Post Export EPCG Notification nos.101/2009-Cus, 102/2009-cus, 22/2013-cus, 5/2013-cus, 23/2013-cus and SHIS Notification No.104/2009-cus and clarification made in Circular nos.26/2009-Cus and 38/2010-Cus, the Public Notice No.-30/2015- 2020 dated 08.09.2016 has been issued by Department of Commerce (DGFT) with the concurrence of Department of Revenue. The aspects notified in the Public Notice are self explanatory. The Ministry directs that pending issues related to the simultaneous issuance or availing of Zero duty EPCG/Post Export EPCG and SHIS shall be decided in terms of the said Public Notice. 4. It was noted by the Ministry that consequent to issuance of the said Public Notice, the bar related to dual issuance placed in Customs notifications in so far as they related to the FTP 2015-become unnecessary. These have been removed through Notification No.52/2016 Customs dated 23.09.2016 that has suitably amended Notification Nos.104/2009-Cus, 16/2015-Cus and 17/2015-cus. 5. Difficulty faced, if any, in implementation of this Public Notice may be brought to the notice of this office. (ANIL KUMAR GUPTA) Commissioner of Customs-IV