Procedure for Registration of EPCG Licence Holder at Nhava Sheva
The following Facility Notice was issued by Commissioner of Customs (Export) Jawaharlal Nehru Custom House on 1st October 2009.
[Customs Facility Notice No. 79 dated 1st October 2009]
Subject: Procedure to be followed in case of EPCG scheme.
Attention of all Importers / Exporters / CHA’s and EPCG Licence Holder and all concerned is invited to procedure to be followed under Facility Notice No.50/2006 dated 08.08.2006, 01/2007 dated 02.01.2007 and 25/2008 dated 13.03.2008 and Board’s Circular Nos. 38/97-Cus. dated 19.09.1997 & 24/2002 dated 06.05.2002 and Customs Notification No. 44/2002 dated 19.04.2002, 58/2004 dated 21.10.2004 and 64/2008 dated 09.05.2008 in case of EPCG scheme. A compilation of the procedure under various Facility Notices and Circulars is given under this Facility Notice. No changes is envisaged in existing procedures.
2. Registration of Licence: The EPCG Licence Holder will submit Request Letter / Authority Letter for registration of licence, the licence in original, Bond in prescribed format, bank guarantee as applicable.
3. The Bond shall be submitted in the prescribed format as per Board’s Circular No. 58/2004 dated 21.10.2004 and shall cover the duty ordinarily leviable on the goods but for the exemption and also interest @ 15% per annum thereon.
4. Execution of BG:
(a) The Bank Guarantee should be submitted along with covering letter of the Bank as per the norms prescribed in Board’s Circular No. 58/2004 dated 21.10.2004.
(b) If the licence holder is availing BG exemption in terms of para 3.1 (a) (b) (c) (d) (e) of the Board’s Circular No. 58/2004 dated 21.10.2004, he shall submit the proof of export performance or payment of duty, as the case may be, duly certified by the jurisdictional Superintendent of Central Excise in case he is registered with the Central Excise. In cases where the exporter is not registered with the Central Excise, but he is a registered member of an Export Promotion Council, he shall produce a certificate from the concerned Export Promotion Council. In other cases the exporter shall produce a certificate duly authenticated by a practicing Chartered Accountant, who is registered with the Central Excise Department for payment of service tax, along with evidences of export to the satisfaction of the Assistant Commissioner or Deputy Commissioner. The Chartered Accountant issuing the certificate will mention his STC code and other registration details in the certificate.
(c) The licence holder claiming to fall under the category of “Other Manufacturer Exporter” in terms of Para 3.1(f), to be eligible for execution of BG at 15% of duty saved amount with EPCG section should submit any one of the following documents as prescribed in Facility Notice No. 01/2007 dated 02.01.2007:-
(i) Permanent Central Excise Registration Certificate duly certified by Jurisdictional Supdt. of Central Excise with Pan Card.
(ii) Permanent S.S.I. Registration Certificate issued by District Industries Centre with Pan Card (Mere acknowledgement is not sufficient).
(iii) Permanent Registration Certificate issued by Secretariat for Industrial Assistance, New Delhi with Pan Card (Mere acknowledgement is not sufficient).
(iv) Any other Registration Certificate as a proof of manufacturer exporter status alongwith previous Export Performance certified by Chartered Accountant / any Export Promotion Council with Pan Card.
(d) All other licence holders are required to file BG of 100% of duty saved amount.
5. The Bond / BG shall be filed for a minimum period of 3 years with an undertaking to keep the BG alive for the entire period of export obligation viz. 8 + 2 = 10 years or 12 + 2 = 14 years etc. Further, all BG should contain an unconditional self renewal clause / undertaking from the Bank to keep the BG alive, till the bond for which the bank guarantee is being given is fully discharged by the Asstt. / Dy. Commissioner of Customs. There should be no over riding clause.
6. The facility of filing “Corporate Guarantee” as provided in DOR Circular No. 38/97-Cus. dated 19.09.97 shall be available subject to fulfillment of conditions specified in the circular.
7. Further, the licence holder should give an affidavit that he has not defaulted on the export obligation in respect of any Advance licence / EPCG licence issued to him in the past and he has not been penalized under the provisions of the Customs Act, 1962, the Central Excise Act, 1944. The Foreign Exchange Management Act (FEMA), 1995 or the Foreign Trade (Development and Regulation) Act, 1992 during the previous three financial years.
8. The capital goods imported, assembled or manufactured are to be installed in the importer’s factory or premises and a certificate from the jurisdictional Dy. Commissioner of Central Excise or Asstt. Commissioner of Central Excise, as the case may be, shall be produced confirming installation and use of capital goods in the importer’s factory or premises, within six months from the date of completion of imports or within such extended period as the Dy. Commissioner of Customs or Asstt. Commissioner of Customs, as the case may be, may allow. If the importer is not registered with central excise or if he is a service provider, as the case may be, he may produce said certificate of installation and usage issued by an independent chartered engineer.
9. Export Obligation performance: In terms of Notification No. 44/2002 dated 19.04.2002, 58/2004 dated 21.10.2004, 97/2004 dated 17.09.2004, 64/2008 dated 09.05.2008, the importers under the EPCG Licence Scheme have to submit evidence of their block year wise export obligation performances. They are required to submit the following documents as evidence of their export performance after completion of first block year as mentioned in the licence. :-
1. Request letter
2. Original EPCG Licence
3. Duty debit sheets in original
4. Installation Certificate from Central Excise
5. Self attested copies of Bills of Entry
6. Self attested copies of Shipping Bills & export invoices
7. Bank Realization Certificates
8. Self attested copies of import Invoice / Bills of Lading
9. Import statement (Bills of Entry-wise details, specially duty saved amounts)
10. Export statement (Shipping Bills details, specially FOB amounts)
11. Authorization letter to CHA / Representative to receive the BG/Bond
12. Any other documents required by Group AC.
10. After completion of export obligation performance for the subsequent blocks, the importer shall produce self attested copies of S/Bills, export invoices, Bank Realization Certificates and Export statements only as evidences for their completion of export obligation in the relevant blocks.
11. Cancellation of Bond / BG: After completion of entire export obligation as specified in the licence, the licencee will apply to the DGFT for issuance of Export Obligation Discharge Certificate. After receipt of EODC from the licensing authorities, the licencee has to request for cancellation of Bond (LUT) / Bank Guarantee executed with custom authorities.
12. After submission of the EODC received from the DGFT, the Bond (LUT) and Bank guarantee, if any, will be cancelled in terms of Notification No. 24/2002 dated 06.05.2002 and the cancelled LUT/BG will be handed over to the licence holder or to his authorized representative. The EPCG Group will also issue a letter to the licencee informing that the LUT/BG is cancelled.
13. In such cases where importers under EPCG Scheme do not submit evidences of block year export obligation performance as laid down in the notification and submit only the EODC issued by the DGFT after completion of their entire export obligation, they shall be required to submit all documents as specified above as evidences of their block year export obligation performance alongwith EODC in terms of Notification No. 44/2002 dated 19.04.2002 and subsequent Notification No. 58/2004 dated 21.10.2004 or 64/2008 dated 09.05.2008 for cancellation of their Bond / BG for imports under EPCG scheme.
14. Any difficulties faced by the Trade in implementation of this facility notice may be brought to the knowledge of the undersigned immediately.
F. No. S/26-Misc- 86 / 2008 EPCG JCH