Minutes of the last Meeting held on were confirmed. The Committee deliberated upon all the cases and following decisions were taken:

Transcription

1 MINUTES OF EPCG COMMITTEE MEETING HELD UNDER THE CHAIRMANSHIP OF SHRI JAIKANT SINGH, ADDITIONAL DIRECTOR GENERAL OF FOREIGN TRADE AT 14:30 Hours ON Following officers attended the meeting: a. Shri Akash Taneja, Joint Director General of Foreign Trade, DGFT b. Shri D.K. Gupta, Director (DBK), Department of Revenue c. Shri K.K. Tiwari, Industrial Advisor, Department of Heavy Industry d. Shri V.K. Kohli, Director, O/o Commissioner of Textile e. Shri Kumar Rahul, Deputy Director General of Foreign Trade, DGFT f. Shri S.K. Kala, Foreign Trade Development Officer, DGFT g. Shri S.K. Panigrahi, Economic Officer, DGFT h. Shri A.S. Chauhan, Foreign Trade Development Officer, DGFT II. III. Minutes of the last Meeting held on were confirmed. The Committee deliberated upon all the cases and following decisions were taken: Sl. No. Firm s Name and Numbers 1. M/s Active Clothing Co. Pvt. Ltd., Chandigarh 01/36/218/71/AM- EPCG Authorisati on No Subject Decision of the Committee submission of the party that they have sufficient export orders to fulfil the specific EO in next two years. The Committee noted that the party has already submitted the 2% composition fee on unfulfilled EO in respect of subject authorizations. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP to allow extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.14 (c) 2. M/s Anand Granite Exports Pvt. Ltd., Hyderabad 01/36/218/13/AM fulfilled their entire EO in the second block period. 3. M/s Balkrishna Industries Limited, Mumbai 18/36/AM-16/P Import of Tractors for testing of tyres intended for exports under EPCG Scheme. The Committee noted that the party is a manufacturer of tractor tyres. The Committee took into account the submission of the party that the overseas buyers in UK and USA insist on having tyres for big tractors tested before exports takes place. They are also in the

2 4. M/s Bharat Litho, New Delhi 01/36/218/54/AM- 5. M/s Kallam Brothers Cottons (P) Ltd., Guntur 01/36/218/102/AM EO and extension in EOP for one year. process of setting up a world class R&D centre at their Bhuj Plant in order to carry out all the required tests in respect of the tyres intended for big tractors. case and decided to defer it with the direction to call for comments of Technical Authority. not made any export during the original EOP. The validity of the purchase order furnished by them has already expired on The Committee, therefore, decided to defer it with directions to obtain valid export orders from party. fulfilled their entire EO in the second block period. 6. M/s Globe Precision Industries Pvt. Ltd., Solan 01/36/218/57/AM not made any exports during the original EOP, due to recession in the international market. The Committee took into account the submission of the party that they have valid export orders and are confident to fulfil their EO. 7. M/s K.N. Industries, Kolkata 01/36/218/182/AM- 15/EPCG-I The case was deferred in the EPCG Committee meeting held on with directions to ask RA, Kolkata to furnish a copy of SCN issued to the party. The Committee noted that RA, Kolkata has furnished a copy of SCN issued to the party on for non-submission of documents for fulfilment of block-wise export obligation. The Committee observed that the party has not made any exports during the original EOP, due to global economic recession/slowdown. The Committee

3 took into account the submission of the party that they now have sufficient export orders and are confident to fulfil the EO within EOP. 8. M/s Kalyani Hayes Lemmerz Ltd., Pune 01/36/218/96/AM fulfilled their entire EO in the second block period. 9. M/s HIM Teknoforge Ltd., Solan (H.P.) 01/36/218/51/AM- 10. M/s TMEIC Indutrial Systems India Pvt. Ltd., Hyderabad 18/62/AM-16/P M/s Modern Petrofils, Baroda 18/56/AM-16/P Import of A.C. motors under EPCG Scheme clarification sought by RA, Hyderabad and extension in EOP for 2 years. not made any exports during the original EOP, due to recession in the international market. The Committee took into account the submission of the party that they have sufficient export orders and are confident to fulfil their EO. case and decided to withdraw it for examination on file as this was a policy issue. The Committee observed that the party has not maintained average EO and has requested for reduction in average EO due to recession in international markets

4 and extension in EOP. (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period. Regarding reduction in average EO, the party may approach RA concerned for relief under Para of the Hand Book of Procedure Volume M/s Minda Industries Limited, Delhi 01/36/218/44/AM- 13/EPCG-I Import of second hand scanning 10W systems laser with computer whether the import item is a personal computer or not clarification sought by CLA, New Delhi. The Committee noted that the party had imported second hand scanning 10W systems laser with computer under EPCG authorization The Committee further noted that as per policy circular No , second hand personal computers were not allowed to be imported under EPCG Scheme. The Committee took into account the comments of the Department of Electronics and Information Technology wherein it was clarified that the item scanning 10W systems laser with computer is a standard Personal computer with customised software installed for integration with scanning 10W laser The Committee, therefore, decided to reject the case. 13. M/s Dinesh Remedies Limited, Vadodara 01/36/218/120/AM- 15/EPCG-I Granting permission to consider their supplies to EOU for EO by condoning procedural lapse of not mentioning EPCG authorization no. and file no. in the invoice/are-3. Representative of DOR stated that they need to call for comments from the concerned central excise authority for verification of ARE-3 forms by the concerned Jurisdictional Central Excise Authority of the supplier, that supply of goods have actually been made to EOU unit and verification by Jurisdictional Central Excise Authority of the recipient unit. The Committee, therefore, decided to defer it. 14. M/s Mackeil Ispat &

5 Forging Kolkata Limited, 01/36/218/205/AM- 15/EPCG-I 15. M/s Usha Diaries New Delhi 01/37/218/40/AM- I Condonation of delay in obtaining installation certificate from central excise. not made any export during the original EOP. The Committee also noted that the validity of the purchase order furnished by them has already expired on The Committee, therefore, decided to defer it with directions to obtain valid export orders and EO fulfilment details from party. fulfilled the EO to the tune of 83.12% on fast track within a period of two years in terms of para 5.09 of FTP submission of the party that they had obtained the installation certificate from central excise authority but there was a delay in obtaining installation certificate beyond 18 months. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP to allow condonation of delay in obtaining installation certificate subject to payment of composition fee of Rs. 5000/ M/s Paragon Industries Ltd., New Delhi 01/37/218/62/AM- I i. Extension of blockwise EO and extension in EOP for 2 years; ii. Condonation of delay in submission of installation certificate. fulfilled 62.76% EO in respect of EPCG authorization no and nil against the authorization no during original EOP, due to huge slump in international market and they have started commercial production after 5 years from issuance of authorization. The Committee took into account the submission of the party that they have sufficient export orders and are confident to fulfil their EO during the extended time period. (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party

6 prescribed time period. submission of the party that they had obtained the installation certificate from central excise authority but there was a delay in submission of installation certificate beyond 18 months. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP to allow condonation of delay in submission of installation certificate subject to payment of composition fee of Rs. 5000/ M/s Techno Doors Pvt. Ltd., Tamilnadu 01/37/218/55/AM- I EO Period fulfilled 18.35% EO during 1 st block and 52.28% in 2 nd block and their is still valid up to M/s Tata Steel Limited, New Delhi 01/37/218/227/AM- 15/EPCG-II Extension in time for submission of installation certificate. submission of the party that the installation of capital goods requires 9 days of complete Caster shutdown during which the old machines will be taken out from Caster to install the new machines and the job also requires certain civil modification in the foundation of the installation area. case and decided to recommend to DG for relaxation under Para 2.58 of time for submission of installation certificate upto 31 st August, 2016, subject to payment of composition fee of Rs.5000/- for each authorization. 19. M/s Riverside Resorts & Holidays Pvt. Ltd., Goa Condonation of delay in submission of installation certificate. fulfilled their entire EO in the 1st block period. 01/37/218/242/AM- 15/EPCG-II submission of the party that they had obtained the installation certificate from chartered engineer but there was a delay in installation of capital goods. The party has submitted that their B/E is and the date of commissioning of capital goods is on Therefore, the installation of capital goods is beyond 6 months but

7 within 18 months. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP to allow condonation of delay in installation of capital goods subject to payment of composition fee of Rs.5000/ M/s Royal Tools India, Faridabad 01/37/218/221/AM- 15/EPCG-II Condonation of procedural lapse of not mentioning EPCG authorization no. and file no. in the invoice/are-3 for supplies to EOU unit fulfilled their entire EO in first block period. submission of the party that they have supplied the goods to M/s Roulunds Breaking India Pvt. Ltd., i.e. 100% EOU Unit, but due to inadvertent error on the part of staff, they could not mention the EPCG authorization number and date on the ARE-3 Forms. FTP to allow condonation of the procedural lapse of not mentioning the EPCG authorization no. and date on the ARE-3 subject to verification of ARE- 3 forms by the concerned Jurisdictional Central Excise Authority that the supply of goods have actually been made to 100% EOU units and certification by Jurisdictional Central Excise Authority for the recipient unit. The regularisation of this authorisation is subject to payment of composition fee of Rs. 200 per ARE 3 form. 21. M/s Pearl Engineering Co., New Delhi 01/37/218/50/AM- I i. Extension of blockwise EO and extension in EOP for 2 years; ii. Acceptance of installation certificate issued by chartered engineer. not been able to fulfil their specific EO during the first block period. (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period.

8 submission of the party that when they had imported the capital goods the product to be produced by the capital goods was not excisable. Hence they have obtained the installation certificate from chartered engineer. Representative of DOR stated that they need to call for comments from concerned central excise authority regarding the capital goods being physically available at the premises of the party in respect of the party s request for acceptance of installation certificate issued by chartered engineer. Hence the request for installation was deferred. 22. M/s Sri Jayajothi Textile Mills (P) Ltd., Tamilnadu 01/37/218/36/AM- I i. Extension of blockwise EO and extension in EOP for 2 years; ii. Clubbing of 4 EPCG authorizations. submission of the party that they have not fulfilled their EO during original EOP, due to global recession and nonavailability of export orders. However, now they have sufficient export orders and are confident to fulfil their EO during the extended time period. (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period. case and decided not to consider the request of clubbing of EPCG authorizations, as the RA is empowered to allow clubbing in the extended EOP and hence they may approach RA concerned. 23. M/s Safire International Pvt. Ltd., New Delhi EO and extension in EOP for 2 years. submission of the party that they have

9 01/37/218/106/AM- I not fulfilled their EO during the original EOP as their plant was setup and commercial production was started after 5 years of issuance of authorization and there was a slump in the International market. Now they have made export tie-ups with some renowned exporters and have sufficient export orders and are confident to fulfil their EO during the extended time period. (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period. The Committee further directed that third party exports will be subject to Para 5.10 (d) of Handbook of Procedure, read with Policy Circular M/s In Time Garments Pvt. Ltd., Faridabad 01/36/218/200/AM- 15/EPCG-I EO Period. fulfilled their entire EO in the second block period. 25. M/s Ask Automotive (P) Ltd., New Delhi 01/36/218/77/AM Permission to shift the capital goods submission of the party that the capital goods were imported and were installed at their unit located at Plot No , Sector 5, IMT Manesar, Gurgaon.

10 Due to shortage of space in the said unit they want to shift the capital goods to their unit at Plot no. 446-D, Sector-8, IMT Manesar, Gurgaon. Both the addresses of the units are already endorsed on IEM, IEC and RCMC. The party has already obtained installation certificate from Central Excise authority. 26. M/s Elmec Tools and Devices Pvt. Ltd., Faridabad 01/36/218/21/AM EO and extension in EOP for 2 years case and decided to allow shifting of capital goods from Plot No , Sector 5, IMT Manesar, Gurgaon, to their unit at Plot no. 446-D, Sector-8, IMT Manesar, Gurgaon. submission of the party that they have fulfilled their EO through third party exports, but the third party refused to give the copies of shipping bills, BRCs and disclaimer certificate of the shipments due to which they are unable to count these shipments against EO fulfilment of subject authorization. At present, the authorisation holder has orders for direct exports and is confident to fulfil EO during the extended time period. forp relaxation under Para 2.58 of (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period. 27. M/s D. Ranilia Fabrics Pvt. Ltd., Bhilwara 01/36/218/79/AM EO and extension in EOP for 2 years submission of the party that they are unable to fulfil their EO, as their original authorization was lost. However, now they have sufficient export orders and are confident to fulfil their balance EO during the extended time period.

11 (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the terms of the provisions of Para 5.14 (c) of HBP ; and payment of composition fee equal to 2% of proportionate duty saved enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of provisions contained in Para 5.17 (b) of HBP , as the party prescribed time period. 28. M/s Bharat Heavy Electricals Limited, Haridwar 01/36/218/35/AM Condonation of delay in installation of capital goods The Committee took account the submission of the party that they had obtained installation certificate from Central Excise Authority but there was a delay in installation of the Capital Goods beyond 18 months. The party stated that procurement of capital goods was done under 3 purchase orders. The delay in installation of capital goods was due to following reasons: a. These machines got damaged during transit and after repair of these machines commissioning started. b. Delay in deputation of experts from supplier for installation. The Committee decided to recommend to DG for relaxation under Para 2.58 of FTP to allow condonation of delay in installation of Capital Goods subject to payment of composition fee of Rs.5000/ M/s Indian Immunologicals Limited, Hyderabad 01/36/218/349/AM- 14/EPCG-I 30. M/s Honda Motorcycle and Scooter India Pvt. Ltd., Gurgaon The Committee observed that there is a short fall in average EO in the year , and However, the party has maintained excess in average EO in the year , and 2008 which covers the shortfall in average EO in the year , and The Committee, therefore, decided to allow counting of the excess exports made in the year , and 2008 towards shortfall in average EO in the year , and submission of the party that the capital goods were imported and were installed at their unit located at Plot No. 109 to 142, KIADB, Narsapura Industrial Area, 01/36/218/12/AM Condonation of not maintaining year-wise annual average EO. Permission to shift the capital goods to the supporting manufacturer.

12 Karinayakanahalli Village Kasba Hobil, Malur Taluk, District Kolar, Karnataka and now they would like to shift production of motorcycle frame body and scooter frame body to their supporting manufacturer i.e. M/s Neel Metal Products Ltd., situated at 92/1, Shivarapatna Village, Kasba Hobli, Malur, District Kolar, Karnataka M/s Master Voss International Projects Pvt. Ltd., Mumbai 18/81/AM-16/P M/s Anupam Art Printers, New Delhi 01/36/218/183/AM- 15/EPCG-I Import of second hand/used heavy load hydraulic modular axles, secondhand/used heavy load equipment for usage with modular axles under EPCG Scheme. EO Period. case and decided to allow shifting of capital goods from Plot No. 109 to 142, KIADB, Narsapura Industrial Area, Karinayakanahalli Village Kasba Hobil, Malur Taluk, District Kolar, Karnataka to their vender i.e. M/s Neel Metal Products Ltd., situated at 92/1, Shivarapatna Village, Kasba Hobli, Malur, District Kolar, Karnataka subject to endorsement of name of supporting manufacturer by RA. The party would submit fresh installation certificate to RA within 6 months from the date of installation of capital goods at the new units. case and decided to defer it with directions to call for comments from the concerned RA. not made any exports during the original EOP. The Committee took into account the submission of the party that now they have entered into agreement with third party for fulfilment of their EO. The Committee further directed that third party exports will be subject to Para 5.10 (d) of Handbook of Procedure, read with Policy Circular 3, M/s Palm Grove Beach Hotels Pvt. Ltd., Mumbai 01/37/218/23/AM- I Condonation of delay in registration of car imported under EPCG The Committee noted that the party had imported a Toyota Camry car under the EPCG scheme and had re-registered the vehicle in the name of the hotel and subsequently got the vehicle registered as a Tourist Taxi on in terms of Policy Circular no The said circular had allowed extension in time up to for mandatory registration of motor cars

13 imported under the EPCG scheme as tourist vehicles. Further, Policy Circular No , DGFT extended the cut off date of registration as tourist vehicle till The party could not get their registration certificate amended within the stipulated time due to delay on the part of the registering authority. The Committee noted that RA has not considered the request for grant of EODC as the installation certificate which is the registration certificate in case of motor vehicles is beyond 18 months. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP to allow condonation of delay in registration of car as tourist vehicles within the stipulated time as allowed vide Policy Circular no read with Policy Circular No. 2 (RE- 2012)/ Dated 19/07/2012 subject to payment of composition fee of 2% of the duty saved amount. 34. M/s Lifelong India Limited, New Delhi 01/36/218/38/AM- 35. M/s Heritage Foods Limited, Hyderabad 01/36/218/94/AM Waiver of submission of installation certificate i. Condonation of blockwise EO and extension in EOP for two years in respect of 2 EPCG authorization Nos & ; ii. Extension of blockwise against authorization nos The party has informed that their plant/branch Lifelong India Limited Plot No. 23, Sec-5, IMT Manesar Distt., Gurgaon had been burnt down on between hrs and hrs due to massive fire (same had already been informed to CLA, New Delhi on ). The party has submitted that they have completed their EO before the fire accident and case is under consideration for EODC with RA. The RA has insisted on installation certificate which was burnt in the fire. Mr. Sanjeev Bansal appeared for PH before the committee. He informed that the capital goods were shifted to the Haridwar unit with prior permission from the regional authority. This had happened in 2009 i.e. prior to the Gurgaon unit getting burnt in The Representative of DOR stated that they need to call for a report from concerned Jurisdictional central excise authority whether the capital goods are still installed at their Haridwar unit. The Committee, therefore, decided to defer the case. fulfilled 47.5% EO against authorization No and 42.51% EO against authorization No and not furnished documents towards fulfilment of EO against other 2 authorizations. The Committee took into account the submission of the party that now they have entered into agreement with third party exporter for fulfilling their EO.

14 & (a) Extension in block-wise EOP in respect of all the 4 EPCG authorizations, as the party prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.14 (c) of HBP ; and (b) Extension in EOP for 2 years in respect of 2 EPCG authorization Nos and on payment of composition fee equal to 2% of proportionate duty saved 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 5.17 (b) of HBP , as the party could not apply to RA within the prescribed time period. The Committee directed that the party should be informed that the third party exports will be subject to Para 5.10 (d) of Handbook of Procedure, read with Policy Circular M/s Janki Newsprint Limited, Delhi 01/36/218/145/AM- 15/EPCG-I i. Extension of blockwise EO and extension in EOP for 2 years. ii. Acceptance of installation certificate issued by Chartered Engineer instead of Central Excise The case was considered in the EPCG Committee meeting held on and it was decided to defer the same as representative of DoR stated that they need to call for comments from the concerned Central Excise Authority in order to confirm whether the goods are in physical possession of the party. The Committee noted that as per report handed over by the representative of DoR during the meeting wherein Range Officer, Central Excise, Range-I, submitted that the imported goods were found installed/available at the registered premises of the party. The Committee observed that the party has not made any exports during the original EOP, due to recession in market. The Committee noted that party has submitted copies of valid export orders and took into account the submission of the party that they are confident to fulfil their EO.

15 (a) extension in block-wise EOP, as the party could not apply to RA within the prescribed time payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.14 (c) of HBP ; and 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 provisions contained in Para 5.17 (b) of HBP , as the party could not apply to RA within the prescribed time period. case decided to recommend to DG for relaxation under Para 2.58 of FTP to allow acceptance of installation certificate issued by chartered engineer instead of central excise authority. DGFT = Directorate General of Foreign Trade DG = Director General FTP = Foreign Trade Policy HBP v1 = Handbook of Procedure Vol. I EO = Export Obligation EODC = Export Obligation Discharge Certificate EOP = Export Obligation Period EPCG = Export Promotion Capital Goods RA = Regional Authority BG = Bank Guarantee FFE = Free Foreign Exchange FE = Foreign Exchange IEC = Importer-Exporter Code DOR = Department of Revenue CLA = Central Licensing Area IEM = Industrial Entrepreneurs Memorandum RCMC = Registration-cum-Membership Certificate