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TMI BlogEPCG Scheme- CBEC Instructions on New Policy / ProcedureX X X X Extracts X X X X X X X X Extracts X X X X ..... revised edition of Handbook of Procedure, Vol. I published on 30th April, 1995. In order to give effect to the changes, Department has issued notifications No. 108/95-Customs to 111/95-Customa all dated 5th June, 1995. The most significant changes are related to the execution of a bond with bank guarantee with the Customs authorities, requirement of fulfillment of export obligation year-wise / block-wise, introduction of zero duty EPCG Scheme, and merger of E.P.C.G. Scheme for service sector with the main E.P.C.G. Scheme. Amendment of Existing Notifications 2. In view of significant changes, revised notification have been issued for import against licences issued under E.P.C.G. Scheme on or after 1st May, 1995. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf, at 15% duty subject to export obligation of four times the CIF value of capital goods to be fulfilled in five years. The notification also permits imports of spare parts not exceeding 10% of the value of capital goods or capital goods in SKD/CKD condition or components of capital goods within the overall value of the licence issued for imports under the scheme. The same notification applies for import by service sector also. The value of bond to be executed and the extent of bank guarantee to be taken shall be as specified in Ministry's Circular No. 52/95 dated 25th May, 1995 issued from F.No. 605/75/95-DBK. Though no specific provision has been made in the Exim Policy in this regard, notification has prescribed specific obligation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and no spare parts/ replacement components are imported in the guise of such assemblies/ sub- assemblies. Introduction of Zero Duty E.P.C.G. Scheme 4.1 Import under E.P.C.G. Scheme have also been permitted at zero duty with higher export obligation equivalent to six times the CIF value of capital goods on FOB basis or four times the CIF value on 'net foreign exchange' basis to be fulfilled within a period of eight years. In order to give effect to this Scheme, Notification No. 111/95-Customs dated 5th June, 1995 has been issued. Under this scheme, also, though there is no provision in the Exim Policy in this regard. specific export obligation required to be fulfilled within each block of two years from the date of issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly for the manufacturing sector and, therefore, duty free import by service sector under zero duty scheme is not permitted. Exporter will be required to produce evidence in the form of a certificate by the Licencing authority towards discharge of export obligation. 5. Your attention is also drawn to the relevant chapters in the Exim Policy and also the paragraphs in the Handbook of Procedure, Vol.I. Your are requested to take note of the contents of the Exim Policy and the Customs Notifications and bring the aforesaid changes to the notice of field officers by issuing suitable standing orders separately for the old Scheme (if not already done), for the 15% E.P.C.G. Scheme and for the Zero duty Schemes. Similarly by separate detaile ..... X X X X Extracts X X X X X X X X Extracts X X X X
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