Indigenous sourcing of capital goods

(a)The EPCG licence holder intending to source capital goods indigenously, shall make a request to the licensing authority for invalidation of the EPCG licence for direct import. The EPCG licence holder shall also give the name and address of the person from whom he intends to source the capital goods.

6.6A Transitional Arrangemnet. The indigenous manufacture who have obtained EPCG licence, upto 31-3-2000 under 0% 10% EPCG Schme prior to the issuance of this public Notice, for import of Coponents required for manufacture of capital goods to be supplied to the EPCG licence holder, sahll be entitled for the issuance of Advance Licence for deemed export for the same CIF value and the FOR value and for the same items of import and supply. This facility shall however be aviailable in respect of those EPCG licence, which have not been utilized at all. All such requests, including the once for conversion of pending application for the issuance of EPCG licence for components into the application for Advance Licence for deemed exports, shall be entertained without payment of any additional fee.

(Public Notice No.35(RE-00)/1997-2002 dated the 29-9-2000)

(b) On receipt of such request, either at the time of issuance of licence or subsequently, the licensing authority shall make the licence invalid for direct import and issue an invalidation letter, in duplicate, to the EPCG licence holder. The licensing authority shall simultaneously grant permission to the EPCG licence holder to procure the capital goods indigenously in lieu of direct import.

(c) The indigenous manufacturer intending to supply capital goods to the EPCG licence holder, may apply to the licensing authority in the form given in Appendix-10B alongwith the documents prescribed therein for import of components required for the manufacture of such capital goods.
The indigenous manufacturer may alternatively apply for Advance Licence for deemed export in terms of paragraph 6.9 of the Policy for import of such inputs as required for the manufacture of capital goods for supply to the EPCG licence holder.
"The indigenous manufacture intending to supply capital goods to the ECPG licence holder may apply to the licensing authority for the issuance of Advance licence for deemed export for import of input including components required for the manufacture of capital goods to be supplied to the EPCG licence holder.

(Public Notice No.35(RE-00)/1997-2002 dated the 29-9-2000)