DGFT Minutes

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject Decision of the Committee   1. M/s    Federal  Mogul Goetze  (India) Limited   01/36/218/182/AM­ 13/EPCG­I 11  EPCG Authorizations issued  during AM­03  to  AM­ 07 Condonation  of delay  in submission  of installation certificate  in respect  of  11 EPCG Authorizations issued  during AM­03 to AM­07 The  Committee  observed  that the  firm  have  already  obtained Installation  Certificate  from Jurisdictional  Central  Excise Authority  and,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  condonation  of delay  in  submission  of Installation Certificate.   This has the approval of DG. MINUTES OF EPCG COMMITTEE MEETING HELD UNDER THE CHAIRMANSHIP OF SHRI JAIKANT SINGH, ADDITIONAL DIRECTOR GENERAL OF FOREIGN TRADE AT 1430 Hours ON 18.11.2013   Following officers attended the meeting:   a.     Shri Akash Taneja, Joint Director General of Foreign Trade, DGFT b.     Shri K. K. Tiwari, Industrial Adviser, Department of Heavy Industry c.     Shri K. K. Sinha, Industrial Adviser, D/o Industrial Policy and Promotion d.     Shri A.K Pandey, Senior Technical Officer (DBK), D/o Revenue   II.             Minutes of the last Meeting held on 23.10.2013 were confirmed.   III.             The Committee deliberated upon all the cases and following decisions were taken:

DBK), D/o Revenue   II.             Minutes of the last Meeting held on 23.10.2013 were confirmed.   III.             The Committee deliberated upon all the cases and following decisions were taken:

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   2. M/s  Hyundai  Motor India Limited   01/36/218/197/AM­ 14/EPCG­I 156  EPCG Authorizations issued  during AM­97  to  AM­ 14 Request  for recognition  of supporting manufacturers Shri  Ajay  Kumar  Saxena, General Manager and Shri K. P. Sampath  Kumar,  Assistant General  Manager  also  appeared before  the  Committee  and represented  their  case.  In  this case the party had submitted a list  of  236  supporting manufacturers  against  156 EPCG  Authorization  alongwith authorization­wise  break­up.  It was observed that the party had in  certain  cases  changed  their supporting  manufacturer  and shifted  the  Capital  Goods.  The Committee deliberated upon the case  in  detail  and  decided  to defer  the  case  with  the direction  to  advise  the  firm  to first  obtain  certificate  from Central Excise Authorities about installation  and  shifting  of Capital Goods.

il  and  decided  to defer  the  case  with  the direction  to  advise  the  firm  to first  obtain  certificate  from Central Excise Authorities about installation  and  shifting  of Capital Goods.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   3. M/s Jai Corp Limited   01/36/218/236/AM­ 14/EPCG­I 21  EPCG Authorizations issued  during AM­07  to  AM­ 09 (a)              Condonation  of delay  in obtaining installation Certificate  from Excise Authority and consequent delay  in submission  to Mumbai, ADGFT office  against 12  EPCG Authorizations issued  during AM­07  to  AM­ 09 (b)              Condonation  of delay  in submission  of installation certificate  and to  advice Central  Excise Authority  for issuance  of installation certificate  in respect  of  9 EPCG Authorizations issued  during AM­07  to  AM­ 09. (a)  The  Committee  observed that  the  firm  have  already obtained  Installation  Certificate from  Jurisdictional  Central Excise Authority and, therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  FTP  for  grant  of condonation  of  delay  in submission  of  Installation Certificate.   (b)  The  Committee  observed that  Central  Excise  Authority has,  vide  letter  dated 07.06.2012,  confirmed  that  all the  machinery  are  available  in the  factory  premises  and  in working  condition.  The Committee,  therefore,  decided to  recommend  to  DG  for relaxation under Para 2.5 of FTP  for  grant  of  condonation of  delay  in  submission  of Installation Certificate.

ng  condition.  The Committee,  therefore,  decided to  recommend  to  DG  for relaxation under Para 2.5 of FTP  for  grant  of  condonation of  delay  in  submission  of Installation Certificate.  

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   4. M/s      Genus Electrotech Limited   01/36/218/128/AM­ 14/EPCG­I 25  EPCG Authorizations issued  during AM­05  to  AM­ 07 Extension in EOP (by  way  of enhancement  in Export Obligation in  terms  of  Para 5.11 of HBP v1), condonation  of block­wise  EO and  permission to  count  exports made  by  Group Company  in fulfillment  of EOP  from  the date  of authorization  in respect  of  25 EPCG Authorizations The  Committee  decided to  recommend  to  DG  for FTP  to  allow  condonation from condition of fulfillment of block­wise  EO  subject  to payment  of  composition  fee  of 2%  on  duty  saved  amount  in proportion  to  the  shortfall  at the end of each block in terms of  the  provisions  of  Para  5.8.3 of HBP v1/Para 5.8.2 of HBP v1 (RE:  2013).    This  has  the approval of DG.   The  Committee  further  decided to  recommend  to  DG  for FTP to allow extension in EOP for  2  years  on  payment  of composition fee equal to 2% of proportionate  duty  saved amount on unfulfilled EO or an enhancement in EO imposed to  the  extent  of  10%  of total  EO  at  the  choice  of exporter,  for  each  year  of extension  sought  in  terms  of provisions  contained  in  Para 5.11  of  HBP  Vol.  I.    This  has the approval of DG.   In  so  far  as  request  regarding counting  of  exports  of  Group

ar  of extension  sought  in  terms  of provisions  contained  in  Para 5.11  of  HBP  Vol.  I.    This  has the approval of DG.   In  so  far  as  request  regarding counting  of  exports  of  Group Company  from  the  date  of issuance  of  Authorizations  is concerned,  the  Committee decided  to  remand  the  case  to the  concerned  RA  for examination and consideration.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   5. M/s    Ankit  India Limited   01/36/218/49/AM­ 14/EPCG­I 0230000683 dated 02.09.2004 0230001145 dated 09.09.2005 Extension in EOP for  7  years  and waiver  of  Annual Average  Export Obligation against  EPCG Authorization Nos. 0230000683 dated 02.09.2004  and 0230001145 dated 09.09.2005 The  Committee  observed  that the  firm  have  already  been granted extension in EOP for  3 years  (from  05.02.2013  to 04.02.2016  in  terms  of  Para 5.11.3  of  HBP  v1  due  to  ban on  exports  of  the  export products) by the concerned RA and  the  firm  have  vide  their revised  report  requested  only for waiver of Annual Average in terms of Para 5.11.3 of HBP v1. The  Committee,  therefore, decided  to  recommend  the case  to  DG to allow waiver of Annual  Average  EO  for  the period in which there was a ban on the export product.   6. M/s  India  Forge  & Drop  Stampings Limited   01/36/218/113/AM­ 14/EPCG­I 3130002510 dated 18.06.2007 3130002976 dated 21.02.2008 3130002585 dated 20.07.2007 3130002528  dated 25.06.2007 Condonation  of delay  in submission  of Installation Certificate  in respect  of  4 EPCG Authorizations

8.06.2007 3130002976 dated 21.02.2008 3130002585 dated 20.07.2007 3130002528  dated 25.06.2007 Condonation  of delay  in submission  of Installation Certificate  in respect  of  4 EPCG Authorizations The  Committee  observed  that the  firm  have  already  obtained Installation  Certificate  from Jurisdictional  Central  Excise Authority  and,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  condonation  of delay  in  submission  of Installation Certificate.  

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   7. M/s  Bayer  Material Science  Private Limited   01/36/218/241/AM­ 14/EPCG­I 0330032387 dated 04.04.2012 Extension  in time,  for  12 months,  for installation  of Capital  Goods imported  against EPCG Authorization No. 0330032387 dated 04.04.2012 The Committee observed that: a.  The firm had imported only a small portion of their total plant  and  machinery  under EPCG  Authorization.  For major  portion  they  had placed  order  from  Indian manufacturers; b.    However,  due  to  delay  in receipt  of  huge  machinery from  the  local manufacturers,  the imported  portion  of  their plant  is  now  lying  at  their factory  premises  for  more than  a  year  waiting  for alignment.  They  have  now received SCN from Customs for  non­installation  of imported  machinery  under EPCG Scheme.   The  Committee,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  extension  in  time for installation for 12 months.   8.

Scheme.   The  Committee,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  extension  in  time for installation for 12 months.   8. M/s  Embroidery Craft   01/36/218/235/AM­ 14/EPCG­I 0530139486 dated 08.09.2005 0530139794 dated 27.10.2005 Condonation  of block­wise  EO against  EPCG Authorization No. 0530139486 dated 08.09.2005  and 0530139794 dated 27.10.2005 The  Committee  decided to  recommend  to  DG  for FTP  to  allow  condonation from condition of fulfillment of block­wise  EO  subject  to payment  of  composition  fee  of 2%  on  duty  saved  amount  in proportion  to  the  shortfall  at the end of each block in terms of  the  provisions  of  Para  5.8.3 of HBP v1/Para 5.8.2 of HBP v1 (RE: 2013).  

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   9. M/s AIA Engineering Limited   01/36/218/231/AM­ 14/EPCG­I 0830005325 dated 18.02.2013 Extension in time for submission of installation  of capital  goods imported  against EPCG Authorization No. 0830005325 dated 18.02.2013 It  was  observed  that  the  firm could  not  install  the  capital goods  due  to  various  reasons and  technical  hitches particularly  on  account  of Capital  Goods  under  CKD condition.  The  firm  have,  in their representation, stated that the  complete  installation  of subject Capital Goods could be feasible  only  around  April, 2014.  The  Committee, therefore,  decided  to recommend  to  DG  for FTP  for  extension  in  time  for installation  of  capital  goods upto 30.04.2014.

s could be feasible  only  around  April, 2014.  The  Committee, therefore,  decided  to recommend  to  DG  for FTP  for  extension  in  time  for installation  of  capital  goods upto 30.04.2014.  

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   10. M/s  Emami  Paper Mills Limited   01/36/218/124/AM­ 13/EPCG­I 27  licenses issued  during AM­12 Extension in time for  2  ½  years (from 13.06.2013)  for installation  of 2nd Hand  Capital Machinery  and subsequent submission  of Installation Certificate The Committee noted that: a.    The  firm  have  completed imports  under  27  EPCG Authorizations; b.  However, the firm is in the process  of  procuring  other allied  machines  like  Pulp making  machinery, Deinking  facilities,  Effluent treatment equipment etc. to complete the Paper making plant. c.  The Central Excise Authority has  issued  a  certificate stating that goods imported against  27  EPCG Authorizations  are  at  firm’s Balasore  Factory  in  packed condition.   The  Committee,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  FTP  for  extension  in time  for  installation  of  capital goods for 2½ years.   11. M/s  Krypton Industries Limited   01/36/218/232/AM­ 14/EPCG­I 0230001185 dated 18.10.2005 Extension of EOP for  1  year  i.e. upto 30.09.2014 in  respect  of EPCG Authorization No. 0230001185 dated 18.10.2005 The  Committee  decided to  recommend  to  DG  for FTP to allow extension in EOP for  1  year  on  payment  of composition fee equal to 2% of proportionate  duty  saved

o. 0230001185 dated 18.10.2005 The  Committee  decided to  recommend  to  DG  for FTP to allow extension in EOP for  1  year  on  payment  of composition fee equal to 2% of proportionate  duty  saved amount on unfulfilled EO or an enhancement in EO imposed to  the  extent  of  10%  of total  EO  at  the  choice  of exporter, in terms of provisions contained in Para  5.11  of  HBP Vol. I.  

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   12. M/s  Pundrik  Textile Mills Private Limited   01/37/218/103/AM­ 14/EPCG­II 3030002286 dated 21.12.2006 3030002238 dated 30.11.2006 3030001750 dated 26.05.2006 3030002285 dated 21.12.2006 3030001897 dated 13.07.2006 3030001896 dated 13.07.2006 Condonation  of block­wise EO for the 1st block The  Committee  decided to  recommend  to  DG  for FTP  to  allow  condonation from condition of fulfillment of block­wise  EO  subject  to payment  of  composition  fee  of 2%  on  duty  saved  amount  in proportion  to  the  shortfall  at the end of each block in terms of  the  provisions  of  Para  5.8.3 of HBP v1/Para 5.8.2 of HBP v1 (RE: 2013).   13. M/s  Vatika  Hotels Private Limited   01/37/218/23/AM­ 14/EPCG­II 9  EPCG Authorizations issued  during the  period from 19.10.2006  to 22.03.2007 Counting  of exports  of  M/s Vatika  Hotels Private  Limited for  the  period 2010­11  for fulfillment  of  EO of  9  EPCG Authorizations The Committee observed that: a.     The licence was issued to  M/s  Vatika Hospitality  Private Limited; b.         M/s  Vatika  Hospitality Private Limited merged with  M/s  Vatika  Hotels Private

The Committee observed that: a.     The licence was issued to  M/s  Vatika Hospitality  Private Limited; b.         M/s  Vatika  Hospitality Private Limited merged with  M/s  Vatika  Hotels Private  Limited  with effect  from 01.04.2010  vide  Delhi High Court order dated 05.10.2011.   The  Committee,  therefore, allowed    counting  of  exports of  M/s  Vatika  Hotels  Private Limited for the period 2010­11 for fulfillment of EO of 9 EPCG Authorizations.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   14. M/s  Style  Design Embroideries Private Limited   01/37/218/122/AM­ 14/EPCG­II 0530139436 dated 02.09.2005 Condonation  of block­wise  EO and  acceptance of  a  few  third­ party  shipping bills  which  do not  bear  the name of firm. The  Committee  decided to  recommend  to  DG  for FTP  to  allow  condonation from condition of fulfillment of block­wise  EO  subject  to payment  of  composition  fee  of 2%  on  duty  saved  amount  in proportion  to  the  shortfall  at the end of each block in terms of  the  provisions  of  Para  5.8.3 of HBP v1/Para 5.8.2 of HBP v1 (RE:  2013).    This  has  the approval of DG.   The  Committee  observed  that the  third­party  shipping  bills contain  the  Licence  Number and  date  and  decided  that these  may  be  accepted  as licence  number  is  a  unique number for a particular firm. 15. M/s  Victora  Auto Parts Private Limited   18/162/AM­ 13/EPCG­II 0530153101 dated 17.08.2010 0530142144 dated 16.10.2006 Condonation  of delay  in installation  of capital  goods and  in  obtaining installation

a  Auto Parts Private Limited   18/162/AM­ 13/EPCG­II 0530153101 dated 17.08.2010 0530142144 dated 16.10.2006 Condonation  of delay  in installation  of capital  goods and  in  obtaining installation certificate  from Central  Excise Authority The  Committee  observed  that the  firm  have  already  obtained Installation  Certificate  from Jurisdictional  Central  Excise Authority  and,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  condonation  of delay  in  submission  of Installation Certificate.     16. M/s  Tata  Motors Limited   01/37/218/22/AM­ 14/EPCG­II 0530157286 dated 26.12.2011 Change  of  place of  installation  of capital  goods and  name  of supporting manufacturer The  Committee  deliberated upon  the  case  and  decided  to allow  endorsement  of supporting  manufacturer  and shifting  of  Capital  goods  from their  present  place  of installation  to  proposed  place as  indicated  below  subject  to the  submission  of  fresh Installation  Certificate  within  6 months of shifting:                                                                                               DG = Director General FTP = Foreign Trade Policy HBP v1 = Handbook of Procedure Vol. I EO = Export Obligation

DG = Director General FTP = Foreign Trade Policy HBP v1 = Handbook of Procedure Vol. I EO = Export Obligation

EPCG authorization No. Capital goods Present  place  of installation Proposed place of installation/  name of  supporting manufacturer Sl. No. of Lic. Details  of capital goods No.0530157286 dated 26.12.2011 96 Press Tool  Dies, Blanking  Dies alongwith Checking fixtures,  Spares and  accessories for  Reinf.  A­ Pillar Top L/R(1 Set) M/s  JBM  MA Automotive Private Limited, C­ 1/2 MIDC, Chakan Talegaon  Road, Chakan,  Pune  – 410501 M/s  Rasandik Engineering Industries  India Limited,  E  82/83, MIDC Ranjangaon, Tal. Shirur, Pune ­ 412209 S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject       17. M/s S.D. Industries   01/37/218/157/AM­ 14/EPCG­II 0330016758 dated 16.07.2007 Condonation  of delay  in submission  of installation certificate The  Committee  observed  that the  firm  have  already  obtained Installation  Certificate  from Jurisdictional  Central  Excise Authority  and,  therefore, decided to recommend to DG for  relaxation  under  Para 2.5  of  Foreign  Trade  Policy for  grant  of  condonation  of delay  in  submission  of Installation Certificate.   18. M/s  Sheena  Exports Panipat   18/75/AM­13/EPCG­ II 3330000669 dated 06.12.2006 3330000739 dated 29.03.2007 3330000791 dated 04.07.2007 3330000872 dated 30.10.2007 3330000980 dated 10.04.2008 3330000974 dated 07.04.2008 Grant  of  benefit of  Para  5.7.6  of HBP v1 Since  the  Technical  Member

29.03.2007 3330000791 dated 04.07.2007 3330000872 dated 30.10.2007 3330000980 dated 10.04.2008 3330000974 dated 07.04.2008 Grant  of  benefit of  Para  5.7.6  of HBP v1 Since  the  Technical  Member from  M/o  Textiles  was  absent the  Committee  decided  to defer the case.   EODC = Export Obligation Discharge Certificate EOP = Export Obligation Period EPCG = Export Promotion Capital Goods RA = Regional Authority NHAI = National Highways Authority of India BG = Bank Guarantee UPS = Uninterrupted Power Supply SKD = Semi knocked down

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S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   19. M/s  Reliance Infrastructure Limited   18/184/AM­ 13/EPCG­II 0330029636 dated 01.06.2011 0330029874 dated 30.06.2011 0330030896 dated 21.10.2011 Import  of  cranes under  EPCG Scheme In  this  case  comments  of  D/o Revenue  had  been  sought. They  have  so  far  not  furnished the comments. Hence, the case was deferred.   20. M/s Shivalik  Bimetal Controls Limited   18/183/AM­ 13/EPCG­II 0530155424 dated 05.05.2011 0530155431 dated 05.05.2011 0530155667 dated 03.06.2011 0530155745 dated 14.06.2011 Installation  of capital  goods  at new location The  Committee  decided  to allow  installation  of  capital goods  at  Shivalik  Bimetal Controls  Limited,  16­18,  New Electronics  Complex, Chambaghat, Solan, H.P. as the place  where  the  capital  goods were  to  be  installed  had  been notified  by  the  NHAI  for widening  (four­laning)  of  the highway from Solan to Shimla.  21. M/s  Reliance Industries Limited   01/37/218/149/AM­ 14/EPCG­II ­­­­­

re  to  be  installed  had  been notified  by  the  NHAI  for widening  (four­laning)  of  the highway from Solan to Shimla.  21. M/s  Reliance Industries Limited   01/37/218/149/AM­ 14/EPCG­II ­­­­­ Issuance of EPCG Authorization  for import  of  UPS System  and Electrical Cable The  Committee  deliberated upon  the  case  in  detail.  The technical  members  were  of  the view  that  UPS  System  has nothing  to  do  with  power generation/transmission/supply. The  Committee,  therefore, allowed import of UPS System and  related  Electrical  Cable under EPCG Scheme.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   22. M/s  Orient Refractories Limited   01/37/218/148/AM­ 14/EPCG­II 0530155257 dated 13.04.2011 Change  of  name in  EPCG Authorization The Committee observed that:   a.          The  subject  EPCG Authorization  was issued  in  the  name  of M/s  Orient  Abrasives Limited; b.          Delhi  High  Court approved  the  scheme of  arrangement (demerger)  between M/s  Orient  Abrasives Limited and M/s Orient Refractories Limited.   The  Committee,  therefore, allowed change of name from M/s  Orient  Abrasives  Limited  to M/s  Orient  Refractories  Limited  subject  to  fresh  submission  of BG. 23. M/s  Adarsh  Realty and  Hotels  Private Limited   01/36/218/151/AM­ 14/EPCG­I Applied  for license Import  of FAÇADE GLAZING SYSTEM  (Pre­ fabricated structure/framing system  for  Hotel building  in  SKD condition  under EPCG Scheme) Pre­fabricated  double  glazed glass  i.e.  FAÇADE  cannot  be covered  under  the  category  of Capital  Goods

d structure/framing system  for  Hotel building  in  SKD condition  under EPCG Scheme) Pre­fabricated  double  glazed glass  i.e.  FAÇADE  cannot  be covered  under  the  category  of Capital  Goods  under  EPCG Scheme.  The  Committee, therefore, decided to reject the case.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   24. M/s  Baxter  (India) Private Limited   01/36/218/163/AM­ 14/EPCG­I 21  EPCG Authorizations issued  during AM­09  to  AM­ 12 Permission  to fulfil  export obligation  from their  Manesar Unit  situated  at Plot  No.  183, Sector  5,  IMT Manesar  in respect  of  EPCG Authorizations availed  for  their Waluj,  B­15/2, MIDC  Area, Waluj, Aurangabad Unit The Committee observed that:   a.     Para 5.5 (a) of FTP of the relevant  period  clearly stipulates that “EO shall be fulfilled by export of goods manufactured/services rendered by the applicant”. b.     Total  exports  from  all  the units  of  same  and  similar products  are  taken  for computation  of  Average Export Obligation.   The  Committee,  therefore, decided  to  recommend  the case to DG to grant permission to  fulfil  export  obligation  from their  Manesar  Unit  situated  at Plot  No.  183,  Sector  5,  IMT Manesar  in  respect  of  EPCG Authorizations  availed  for  their Waluj,  B­15/2,  MIDC  Area, Waluj, Aurangabad Unit.   25. M/s  Sambandam Spinning  Mills Limited   01/37/218/135/AM­ 14/EPCG­II ­­­­­ Issuance of EPCG Authorization  for import  of  UPS System The  Committee  deliberated upon  the  case  in  detail.  The technical  members  were  of  the

Limited   01/37/218/135/AM­ 14/EPCG­II ­­­­­ Issuance of EPCG Authorization  for import  of  UPS System The  Committee  deliberated upon  the  case  in  detail.  The technical  members  were  of  the view  that  UPS  System  has nothing  to  do  with  power generation/transmission/supply. The  Committee,  therefore, allowed import of UPS System under EPCG Scheme.

S. No. Firm’s  Name  and Numbers EPCG Authorization No.   Subject   26. M/s  Essar  Steel Private limited   01/36/218/180/AM­ 14/EPCG­I 5230007436 dated 27.08.2010 Permission to sell oxygen  plant  on completion  of export  obligation for  proportionate value  and  based on  partial  EODC issued  against EPCG Authorization No. 5230007436 dated 27.08.2010 The  case  could  not  be considered  due  to  paucity  of time and would be taken up in the next meeting.