Redemption of EPCG Authorizations
[DGFT Policy Circular No. 16 dated 13th November 2009]
Subject: Clarification regarding Foreign Exchange earnings to be counted for redemption of EPCG Authorizations issued to Service Provider.
A representation has been received from Zonal Joint Director General of Foreign Trade, Mumbai Office seeking clarification regarding calculation of Foreign Exchange earned for redemption of EPCG Authorizations issued to Service Providers in terms of provisions of Circular No. 25 dated 01.01.2008.
2. The matter has been examined and it is clarified that Policy Circular No. 25 dated 01.01.2008 has specifically been issued for the Served From India Scheme (SFIS) and is not applicable to the EPCG Scheme. EPCG authorizations may be issued and redeemed as per the provisions of Chapter 5 of FTP & HBP Vol.I.
3. All Regional Authorities are therefore informed that the provisions of Circular No. 25 dated 01.01.2008 are not to be applied for redemption of EPCG Authorizations.
This issues with the approval of Director General of Foreign Trade