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Circular
No. 5/97-Cus.
dated 14/3/97
F.No. 605/71/95-DBK
(Pt)
Government of India
Ministry of Finance
Department of Revenue,
New Delhi
Subject:-
Changes in Export Promotion Capital Goods (EPCG) Scheme as introduced
by revised edition
of Exim Policy
published on 31.3.95 and revised edition of Handbook of procedures,
Vol. I Published on 31.3.95
and revised edition of Handbook of procedures, Vol. I Published
on 30.4.95- Monitoring of
export Obligation.
Consequent upon changes introduced in the Export Promotion Capital Goods
(EPCG) Scheme w.e.f. 1.5.95, Directorate General of Inspection was requested
to have a study conducted of the Standing Orders / Public Notices issued
by various Custom Houses in this regard with a view to ensure that a uniform
and effective system is followed by all Custom Houses for monitoring fulfillment
of Export Obligation under both 15% and zero duty E.P.C.G. Scheme. D.G.I.
has accordingly conducted a study and made recommendations in this regard.
Some of the recommendations which have been accepted by the Board for implementation
are reproduced below:-
(a) Registration
of the Licences:
While some of the Commissionerates have issued elaborate instructions others
have not given all the details in the Standing Order itself. It is suggested
that details of the various heads of the licence register to be maintained
for the scheme which is given at Annezure-I1 be adopted by all
the Commissionerates. The Following features appearing in Calcutta Custom
House standing order could be included in the standing orders issued by
all Custom Houses.
A comprehensive format has been designed for monitoring various aspects
of the EPCG Scheme which require monitoring, viz., details of the EPCG
licences, FOB value of goods exportable by the licencee and actually Exported,
the details of the Bond and Bank Guarantees including the Bank's name,
details of duty payable and recoverable along with particulars of recovery
and the details of certification by the Directorate General of Foreign
Trade etc. (Annexure- II)*. This could be adopted by the Commissionerates
for the Sake of uniformity.
Commissioner, Cochin has prescribed "Time Diary" as in Annexure
III* and as an effective method of monitoring the defaulters and for raising
timely demands. This could be adopted by all the Commissioners of Customs.
A model Show Cause Notice (Annexure-IV)* has also been prepared by Commissioner,
Cochin wherever the licence holder has failed to import / export as per
Notification No. 111/95-Customs. This could be adopted by other Custom
Houses for uniformity.
(c) Bonds
and Bank Guarantees
It is noticed that the language of the bond does not mention the amount
of interest that has to be collected on delayed payments. It is, therefore,
suggested that Commissioners should amend the language of the Bond so that
in the event of non-fulfilment of any of the conditions of the Customs
Notification or the provision in the Exim Policy Handbook of Procedures,
such licence holder is liable to pay not only the amount of bond but also
interest @ 24% per annum as specified in relevant notifications.
(d) Duties
of various Officers
Except for Madras Custom House no other Custom House has issued a list
of details to be followed by different level of officers for implementing
the scheme (Annexure-V)1. This could be adopted by others for
uniformity and accountability.
2.
Necessary Standing Orders for guidance of staff on the above lines may
please be issued immediately. It must be ensured that the instructions
contained in this Circular are followed scrupulously and register maintained
are supervised every month by the Assistant Commissioner of Customs and
Every quarter by Deputy Commissioner of Customs.
Sd/-
(Sunil Kumar)
Director (Drawback)