PN 45/2016 IN FORCE EPCG 2016-10-18

Incorrect simultaneous issuance of dual benefit of Zero duty EPCG and SHIS to exporters under the FTP 2009-14-option providing flexibility to return either benefit

Subject

Incorrect simultaneous issuance of dual benefit of Zero duty EFEe and ous to exporters under the FTP 2009-14-option providing flexibility to return either benefit- reg. Attention of all the Members of Trade, Custom House Brokers a other stakeholders is invited to CBEC Circular No. 45/2016-Customs dated 23.09.2016 on the above mentioned subject. 2. Instances of simultaneous issuance of zero duty EPCG and SHIS were detected by DRI and highlighted to the DGFT. Subsequently, the CAG of India also mapped the concurrent availing of SHIS and zero duty EPCG not being in line with FTP 2009-14 provisions. The issue revolves around wordings in para 5.1 A HBP (27.08.2009), para 5.1 (f) FTP (5.6.2012), para 5.1(b) FTP (18.4.2013), para 3.10.3 and 9.3 (HBP). 3. After inter-Departmental consultations, that also took into account wordings in conditions specified in Customs EPCG/Post Export EPCG notification nos. 101/2009Cus, 102/2009-Cus, 22/2013- Cus, 5/2013-Cus, 23/2013-Cus and SHIS nouficauon No. 104/2009-Cus and clarifications made in Circular Nos. 26/2009-Cus and 38/2010-Cus, the Public Notice No. 30/2015-2020 dated 08.09.2016 has been issued by the Department of Commerce (DGFT) with the concurrence of Department Of

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WU 3arh (UraTea) AATYoh Pl pistors OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (GENERAL) achat Haya Haat Tees SECS, Hay-voo oof NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI - 400 001 eee el 1A DOTS F.No. $/23-19/Tech/2016 = Date:|§. 10.2016 PUBLIC NOTICE No. «..-/2016

Sub: Incorrect simultaneous issuance of dual benefit of Zero duty EFEe and ous to exporters under the FTP 2009-14-option providing flexibility to return either benefit- reg. Attention of all the Members of Trade, Custom House Brokers a other stakeholders is invited to CBEC Circular No. 45/2016-Customs dated 23.09.2016 on the above mentioned subject. 2. Instances of simultaneous issuance of zero duty EPCG and SHIS were detected by DRI and highlighted to the DGFT. Subsequently, the CAG of India also mapped the concurrent availing of SHIS and zero duty EPCG not being in line with FTP 2009-14 provisions. The issue revolves around wordings in para 5.1 A HBP (27.08.2009), para 5.1 (f) FTP (5.6.2012), para 5.1(b) FTP (18.4.2013), para 3.10.3 and 9.3 (HBP). 3. After inter-Departmental consultations, that also took into account wordings in conditions specified in Customs EPCG/Post Export EPCG notification nos. 101/2009Cus, 102/2009-Cus, 22/2013- Cus, 5/2013-Cus, 23/2013-Cus and SHIS nouficauon No. 104/2009-Cus and clarifications made in Circular Nos. 26/2009-Cus and 38/2010-Cus, the Public Notice No. 30/2015-2020 dated 08.09.2016 has been issued by the Department of Commerce (DGFT) with the concurrence of Department Of » Revenue. The aspects notified in the Public Notice are self explanatory. The Ministry directs that pending issues related to the simultaneous issuance or availing of Zero Duty EPCG/Post Export EPCG and SHIS shall be decided in terms of the said Public Notice. 4. It was noted by the Ministry that consequent to issuance of the said Public Notice, the bar related to dual issuance placed in Customs notifications in so far as they relate to the FTP 2015-20 become unnecessary. These have been removed through Notification No. 52/2016-Customs dated 23.09.2016 that has suitably amended Notification Nos. 104/2009-Cus, 16/2015-Cus and 17/2015-Cus. ‘ 5. Difficulty faced, if any, may be brought to the notice of this office. (B. Bhattacharya) Pr. Commissioner of Customs (General) New Customs House Copy to:1. The Chief Commissioner of Customs, General, Mumbai Zone - | 2. The Pr. Commissioner/ All Commissioners of Customs, General, Mumbai Zone - | 3. All Addl./Joint Commissioners of Customs, General ,Mumbai Zone — | 4. All Deputy/ Asstt. Commissioner of Customs, General, Mumbai Zone - | S. The DC/AC, EDI for uploading on the NCH, Zone -I Website. Scanned by CamScanner

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