Home India Ministry of Commerce and Industry In exercise of powers conferred under Paragraph 2 04 of FTP ...
Date: 2018-08-14 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred under Paragraph 2 04 of FTP 2015 20 read with Paragraph

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This Public Notice issued by the Directorate General of Foreign Trade provides a one-time relaxation regarding the acceptance of installation certificates under the Export Promotion Capital Goods (EPCG) Scheme. It addresses delays in submitting installation certificates to Regional Authorities (RAs) and waives penalties for authorizations issued up to March 31, 2015, provided the installation occurred within 18 months of import. This relaxation is valid until March 31, 2019. Key Points / Main Content: EPCG Scheme Requirements: * Authorization holders must submit installation certificates to the RAs within a prescribed time. * Delays in submitting installation certificates have been occurring due to various reasons, including delays in machinery installation or certificate issuance. Previous Relaxations: * Public Notice No. 37/2015-20 dated October 25, 2017, provided a one-time relaxation for delays, with a penalty of Rs. 5,000. * Public Notice No. 01/2015-20 dated April 26, 2018, extended the benefit until September 30, 2018. Current Relaxation: * RAs are permitted to accept installation certificates without penalty for authorizations issued up to March 31, 2015. * The installation must have occurred within 18 months from the date of import. * The EPCG authorization should not be under investigation by any authority (RA, Customs, or other investigative agency). Validity and Refunds: * This relaxation is available until March 31, 2019. * No refunds will be provided for penalties already paid under Public Notice No. 37/2015-20 dated October 25, 2017. Other Conditions: * Terms and conditions in Public Notice No. 37/2015-20 and Public Notice No. 01/2015-20, consistent with this notice, remain applicable. Impact Analysis: Authorization Holders (Importers under EPCG Scheme): * Impact: Benefit from the waiver of penalties for delays in submitting installation certificates, provided they meet the specified conditions (authorization issued by 31.03.2015 and installation within 18 months of import). * Action Required: Ensure that the installation occurred within 18 months of the import date, verify that their authorization is not under investigation, and submit the installation certificate to the RA before March 31, 2019, to avoid penalties. Regional Authorities (RAs): * Impact: Must accept installation certificates without penalty if the specified conditions are met. * Action Required: Process installation certificate submissions according to the new guidelines, ensuring that the authorization was issued by March 31, 2015, the installation occurred within 18 months of import, and the authorization is not under investigation. Directorate General of Foreign Trade (DGFT): * Impact: Oversees the implementation of the relaxation. * Action Required: Ensure the Public Notice is effectively communicated to relevant stakeholders and monitor its implementation.

Key Entities Referenced

EPCG Scheme: Export Promotion Capital Goods Scheme. A scheme by the Indian government to facilitate imports of capital goods to promote exports. Directorate General of Foreign Trade: An attached office of the Department of Commerce, Ministry of Commerce and Industry, Government of India. It is responsible for implementing the foreign trade policy. Foreign Trade Policy 2015-20: The Foreign Trade Policy (FTP) 2015-20 outlines the framework for promoting exports and facilitating imports. Installation Certificate: A certificate required under the EPCG scheme to verify the installation of imported capital goods. Regional Authorities: The regional licensing authorities responsible for administering the EPCG scheme. Handbook of Procedures 2009-14: A handbook providing detailed procedures related to the Foreign Trade Policy, specifically the 2009-14 version referred to in the context of installation certificate submission. Alok Vardhan Chaturvedi: Director General of Foreign Trade. Ministry of Commerce and Industry: The ministry responsible for developing and promoting India's international trade.
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izkf/kdkjh dk s fdlh Hkh le;] ;gk a rd fd ekps u d s le; ij Hkh miyC/k djk ldr s gASa 6- bl lca /a k e sa vH;kons uk sa dk s /;ku es a j[kr s g,q rFkk bl i;z kts u gsr q O;kikj dju s dk s lxq e cuku s gsr q {ks=h; izkf/kdkjh dk s 31-03-2015 rd tkjh izkf/kdkj&i= d s lca /a k esa teq kuZ s ij u tksj nsr s g,q laLFkkiu iez k.k&i= dk s Loh—fr inz ku djus dh vueq fr fn, tku s dk fu.kZ; fy;k x;k gS ;fn vk;kr dh frfFk l s 18 ekg d s vna j laLFkkiu gks x;k gk]s c'krsZ biZ hlhth izkf/kdkj i= fdlh vUo"sk.k ds v/khu u gksa ;k {ks=h; izkf/kdkjh@lhek'kYq d izkf/kdkjh@fdlh vU; vUo"sk.k ,tsalh }kjk vf/kfuf.kZr u gksA ;g NVw 31-03-2019 rd miyC/k gkxs hA lkotZ fud lpw uk låa 37@2015&20] fnukad 25-10-2017 d s rgr igy s l s Hkxq rku fd, x, teq kZu s dk dkbs Z fjQMa ugh a gkxs kA 7- bl lkotZ fud lpw uk d s lqlxa r lkotZ fud lpw uk l-a 37@2015&20] fnukda 25-10-2017 vkSj lkotZ fud lpw uk l-a 01@2015&20] fnukda 26-04-2018 d s vU; fu;e ,o a 'kr sZa ykxw jgxsa hA bl lkoZtfud lwpuk dk izHkko% fnukda 31-03-2015 rd tkjh fd, x, izkf/kdkj&i= gsr q biZ hlhth Ldhe d s rgr {ks=h; izkf/kdkjh dk s laLFkkiu iez k.k i= izLrqr dju s es a foyEc dh ekQh vkSj ,d dkfyd NVw fcuk fdlh teq kZu s d s Hkxq rku d s nh xb Z gSA vkykds o/kUZ k prqosZnh] egkfun's kd] fon's k O;kikj MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) PUBLIC NOTICE New Delhi, the 14th August, 2018 No. 30/2015-20 Subject : Acceptance of installation certificate under EPCG Scheme by the RAs, wherein installation certificate is submitted beyond 18 months, without penalty F. No. 18/96/AM-19/P-5.—In exercise of powers conferred under Paragraph 2.04 of FTP (2015-20) read with Paragraph 2.58 of FTP (2015-20), the Director General of Foreign Trade in public interest hereby makes the one time relaxation in procedure in respect of acceptance of installation certificate under the EPCG Scheme. 1. Under the EPCG Scheme, the authorization holders are required to submit the installation certificate showing installation of the capital goods to the RA within the prescribed time period. 2. Sometimes, the submission of installation certificate to the RAs was not within the time prescribed on account of various reasons, including delay in installation of the machinery/delay in issuance of installation certificate etc. The EPCG Committee was receiving requests for condonation of time period of submission of installation certificate to the Regional authorities. Some of such requests for condonation were considered by the EPCG Committee on payment of composition fee of Rs.5,000/- 3. As a facilitative measure, Public Notice No.37/2015-20 dated 25.10.2017 was issued permitting one time relaxation for condonation of time period upto 31.03.2018 condoning the delay in submission of installation certificate on payment of penalty of Rs.5000/- per authorization (provided the installation has happened within the period of 18 months). The benefit of said Public Notice was further extended upto 30.09.2018 vide Public Notice No.01/2015-20 dated 26.04.2018. 4. There have been representations from the Trade for accepting the submission of installation certificate without insisting on penalty, if the installation has happened within the specified time prescribed. The¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 3 contention in the representations is that as per their understanding, of the para 5.3.1 of HBP (2009-14), there was no time limit for submission of the installation certificate and the time limit was only for the installation of machinery. It has also been pointed out that in the past, some RAs have accepted the installation certificate even at the time of redemption. Therefore, it has been requested not to impose any penalty for these authorizations. 5. The issue has been considered. The submission of installation certificate is an important aspect of monitoring of the EPCG Scheme which cannot be postponed till the completion of the EO period. The intent of the para of the HBP was clearly that the capital goods were to be imported, the installation certificate obtained and presented to the RAs within the time period in the said para. The reading of the relevant custom notification for the EPCG Scheme also makes it clear that the installation certificate was to be produced within the period specified. However, it is contended by some that they could interpret the para under the HBP (2009-14) that the period applies only for installation/obtaining the certificate and they can provide the same to the RAs anytime even at the time of redemption. 6. Taking into account the representations in this regard and to facilitate the ease of doing business for the purpose, it has been decided to permit the RAs to accept the installation certificate without insisting for penalty in respect of authorization issued upto 31.03.2015 as long as the installation has happened within 18 months from the date of import, provided the EPCG authorization is not under any investigation/adjudicated by RA/customs authority/any other investigative agency. This relaxation will be available upto 31.03.2019. There will not be any refund of the penalty already paid under the Public Notice No.37/2015-20 dated 25.10.2017. 7. The other terms and conditions in the Public Notice No.37/2015-20 dated 25.10.2017 and Public Notice No.01/2015-20 dated 26.04.2018 consistent with this Public Notice will continue to be applicable. Effect of this Public Notice : One time relaxation and condonation of delay in submission of installation certificate to RAs under EPCG Scheme for authorizations issued upto 31.03.2015, without payment of any penalty. ALOK VARDHAN CHATURVEDI, Director General of Foreign Trade Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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