Scope of Post Export EPCG Duty Credit Curtailed to only Basic Duty

· CVD Covered only by CENVAT

· Exemption of CVD only in Normal Pre Export EPCG Cases

· Corresponding Customs Notification in Post Export EPCG Scheme Awaited

[DGFT Notification No. 33 dated 8^th February 2013]

Subject: Amendment in FTP (RE-2012)(2009-2014)- Post Export EPCG Scheme

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby amends with immediate effect para 5.11 of Foreign Trade Policy, 2009-2014 (RE 2012).

2. The existing Sub-Para (b) of Para 5.11of FTP which reads as under has been amended:-

“Duty paid on capital goods (excluding portion CENVATed/ Rebated) shall be remitted in the form of freely transferable duty credit scrip(s)”.

The amended Sub-Para (b) of Para 5.11of FTP will now read as under:

“Basic Customs duty paid on Capital Goods shall be remitted in the form of freely transferable duty credit scrip(s), similar to those issued under Chapter 3 of FTP.”

3. Effect of this amendment

It is clarified that duty credit scrips issued under Post Export EPCG Scheme will be issued only in  respect of basic customs duty and will have the same features as Chapter 3 scrips.