Date: 2022-07-27Category: Not ApplicableState: Union GovernmentCountry: India
Relaxation in provision of submission of 'Bill of Export' as an
evidence of export obligation discharge for supplies made to SEZ
units in case of EPCG Authorization-reg.
**Summary:**
Policy Circular No. 49/2015-2020, issued by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, Government of India, on July 27, 2022, provides a relaxation in the requirement for submitting a Bill of Export as evidence of export obligation discharge for supplies made to Special Economic Zone (SEZ) units under Export Promotion Capital Goods (EPCG) Authorizations.
This circular extends a previously granted relaxation (vide Policy Circular No. 39 dated 07.06.2022 concerning Advance Authorisations) to EPCG Authorizations. Specifically, for supplies made to SEZ units *prior* to April 1, 2015, exporters are permitted to submit alternative corroborative evidence in lieu of the Bill of Export. Acceptable alternative evidence includes:
* ARE1 form duly attested by jurisdictional Central Excise authorities of the EPCG authorization holder.
* Evidence of receipt of the supplies by the recipient in the SEZ.
* Evidence of payment made by the SEZ unit to the EPCG authorization holder.
This relaxation is based on Para 2.58 of the Foreign Trade Policy (FTP) 2015-2020, which has been extended up to September 30, 2022.
The policy circular is effective as of the date of issuance and has been approved by the DGFT.
For further information, contact Randheep Thakur, Joint Director General of Foreign Trade, File No. 18/19/AM23/P5.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce.
Department of Commerce: A department under the Ministry of Commerce and Industry, Government of India.
Directorate General of Foreign Trade (DGFT): An agency of the Ministry of Commerce and Industry, Government of India, responsible for implementing foreign trade policy.
Foreign Trade Policy: A set of guidelines and regulations governing import and export activities in India.
SEZ (Special Economic Zone): A specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
EPCG Authorization: Export Promotion Capital Goods scheme authorization that allows import of capital goods for producing quality goods and services to enhance India's export competitiveness.
Policy Circular No. 39 dated 07.06.2022: A previous policy circular that relaxed the submission of Bill of Export for supplies made to SEZ in case of Advance Authorisation.
AREI form: A form related to central excise procedures, required to be attested by Central Excise authorities.
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Policy Circular No. 49 /2015-20
Dated: 27" July, 2022
To
All Regional Authorities of DGFT
All Exporters/Members of Trade
All Custom Authorities
Subject: Relaxation in provision of submission of ‘Bill of Export’ as an evidence of export
obligation discharge for supplies made to SEZ units in case of EPCG
Authorization-reg
The requirement of submitting ‘Bill of Export’ for supplies made to SEZ is prescribed
under the Foreign Trade Policy. Recently, the requirement of submission of Bill of Export for
supplies made to SEZ in case of Advance Authorisation has been relaxed vide Policy Circular
No. 39 dated 07.06.2022.
a The issue has been examined and in terms of Para 2.58 of the FTP 2015-2020 (extended
up to 30.09.2022), it has been decided to relax the condition of requirement of submission of
‘Bill of Export’ in case of exports made to SEZ units under EPCG Authorization, for all such
supplies made prior to 01.04.2015.
3. Accordingly, for the purpose of discharge of export obligation under EPCG Authorizations,
in case of supplies made to SEZ units prior to 01.04.2015, the exporters can submit corroborative
evidence in lieu of ‘Bill of Exports’ such as:
a. ARE-I form duly attested by jurisdictional Central Excise authorities of EPCG
authorization holder.
b. Evidence of receipt of the supplies by the recipient in the SEZ.
c. Evidence of payment made by the SEZ unit to the EPCG authorization holder.
4. This Policy Circular is issued with the approval of DGFT.
pow
(Randheep Thakur)
Joint. Director General of Foreign Trade
(Issued from File No.18/19/AM-23/P-5)