Rationalization of procedures in handling exporters obligations under EPCG authorization - Customs - PUBLIC NOTICE NO. 48/2016

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) EPCG SECTION, AIR CARGO COMPLEX, SAHAR, ANDHERI (EAST), MUMBAI- 400099. F. No.S/3-Misc-134/2016-17 /EPCG/ ACC Date: 29.11.2016 PUBLIC NOTICE NO. 48/2016 Sub: Rationalization of procedures in handling exporters obligations under EPCG authorization - reg. Attention of all the members of Trade, Air Cargo Complex, Brokers and other stakeholders is invited to CBEC Instruction dated 14.10.2016 on the above mentioned subject. 2. The Board has reviewed certain aspects of the directions given to the field formations in Circular No. 5/2010-Cus, instruction No. 609/119/2010-DBK dtd. 18.01.2011 and Circular No. 14/201S-Cus insofar as they relate to EPCG scheme. 3. In circular of 2010 and instruction of 2011, it was prescribed that EO (Export Obligation) of first block should be verified in detail and if found satisfactory then EODC issued at the end of 2nd block be accepted without further verification and in cases where exporter had not come forward for r'' block verification and directly submitted the EODC, the EODC may be accepted subject to random 'verification of at least 5% EODCs. In this connection it was noted that not meeting the block-wise EO attracts composition fees or payment of duty with interest. Further, on consultation with DGFT it was seen that 5.14 ( c) of HBP has provision for payment of Composition fees amounting to 2% of duty saved amount for seeking extension of first block by RA, and payment of Customs duty and interest proportionate to duty saved amount on total unfulfilled EO of the first block and similar provisions in previous FTP/HBP 2009-14 and 2004-09 are strictly followed by RA's before issuing EODC/redemption/ closure letters. 4. In light of this, Board vide instruction dtd. 14.10.2016 has decided that customs authorities need not replicate the verificat ion of EO of First Block that is being conducted by Regional Authorities and that the EODC's received under EPCG scheme in terms of FTP/HBP2004-09, 2009-14 and 2015-20 be normally be accepted without verification except in 5% cases where they be verified in detail before acceptance. Exporters would invariably be informed whenever their case is selected for detailed verification. Further, detailed verification of EODC would be done where such a need is suggested by specific intelligence. 5. It is further stated that if RA endorses verification of Shipping Bills/other documents such verification shall be carried out and in case of EODCs issued based on non-EOI shipping Bills/bills of export, verification of genuineness is mandatory. Also, monitoring of block-wise EO fulfillment will continue as clarified in Circular No. 14/201S-Cus and field formations can view the EPCG authorization-wise all India export details in EOI. 6. 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