NOTIFICATION No. 15/2002-07, Dt. 13/09/2002

12 Year EO Period for EPCG Licences granted to AEZ units

In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) read with paragraph 1.1 of the Export and Import Policy, 2002-07, the Central Government hereby amends/corrects the Export and Import Policy, 2002-07 as under:

1) A new sub paragraph 5.5.2 is inserted as under:

In the case of EPCG licences issued to units in the agri export zones, a period of 12 years reckoned from the date of issuance of the licence would be permitted for the fulfillment of export obligation.

This issues in public interest.

(L.Mansingh)
Director General of Foreign Trade
Ex officio Addl Secretary to the Government of India

(A.B.Menon)
Dy. Director General of Foreign Trade

(F.NO. 01/94/180/20/AM03/PC-IV)

In the aftermath of the Port Officers meeting held on 22nd and 23rd April, 2002, some other issues have also cropped up which require amendment in the EXIM Policy.

1. The Transitional arrangement for automatic extension of the status certificates expiring on 31st March, 2002 by 2 years has not been made applicable to golden status certificate holders. We may include the latter by correcting paragraph 3.7.4.

2. Under the DFRC scheme, the minimum value addition of 33% would not be applicable to products in the Gem & Jewellery sector wherein the value addition would be as those given in paragraph 4.56.1 of Handbook of Procedure(Vol.1). We may amend the paragraph 4.2.1 to incorporate this provision.

3. The revised export performance criteria for status holders has been made applicable to service providers also. A separate performance level for service provider could be considered only after correcting paragraph 9.53 of the Policy.

4. EOU/EPZ division of the Department of Commerce has sent certain proposals as under

Addition in paragraph 7.1(c) :

“Units for generation/distribution of power may also be set up in the SEZ’s”

Correction of Paragraph no. 7.8 (c)(i) from 8.3 to 8.2 of the Policy.

Correction in Paragraph 7.9(a)(II) (iii) as under:

“Reimbursement of Central Excise duty paid on bulk tea procured from the licenced auction centres by the Development Commissioner of concerned zone so long as levy on bulk tea in this regard is in force.”

With regard to the proposal regarding paragraph 7.8(c)(iv), it was decided that the justification for the amendment may be called for as there is not much difference in the present provision and the amendment suggested for.

The Department of Commerce has also forwarded a proposal with the approval of CIM to allow DEPB facility to the supplier of DTA for supplies made to SEZ or unit in SEZ. Earlier, the proposal was not incorporated in the Policy as the amendment to the various act was considered necessary before extending the facility. We could not get the proposal in the Finance Bill wherein Customs is considering such supplies as physical exports. In view of this, a decision needs to be taken for inserting a new sub paragraph in paragraph 7.9(a)(i) so as to allow the facility proposed by EOU/EPZ division.

With regard to extension in period of export obligation to 12 years to units in AEZ, it was decided that before incorporating the change, we may consult the Department of Revenue so that the Customs notification may also be modified.

(A.B.Menon)
Dy.Director General of Foreign Trade
1.5.2002

Jt.DGFT (AS)

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