Summary of Changes in Handbook Vol.1 wef. 28/01/2004

Para

From

To

 

2.12(iii)

Validity

 

Spares under EPCG Licence – Validity of EO period

Validity

 

(iii) EPCG Licence for spares, refractories, catalyst and consumables - 24 months

 

2.47

Prototypes

 

Import of new/second hand prototypes/ second hand samples not exceeding ten in number in a year may be allowed on payment of duty without a licence/ certificate/ permission.

 



Import of new/second hand prototypes/ second hand samples may be allowed on payment of duty without a licence/ certificate/ permission.

2.52.1

Free of Cost Exports

 

The status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.5 lakh or 2% of the average annual export realisation during the preceding three licensing years whichever is higher.



Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.10 lakhs or 2% of the average annual export realization during the preceding three licensing years whichever is higher.

3.18

a) Service providers (other than hotels and service provider in the tourism sector) fulfilling the criteria mentioned in paragraph 9.47 of the Policy shall be entitled to duty free imports equivalent to 10% of the average foreign exchange earned by them in the preceding three licensing years. However, hotels (having approval as three star or above categories by the Department of Tourism, Government of India) and other service providers in tourism sector registered with Deptt. of Tourism, Government of India shall be entitled to duty free imports equivalent to 5% of the average foreign exchange earned by them in preceding three licensing years.

 

 


b) The duty free credit entitlement certificate shall be used for import of spares, office equipment(s) and furniture(s), professional equipment(s), and consumables provided such goods are freely importable under ITC(HS). However, import of agriculture and dairy products shall not be allowed even if such items are freely importable under ITC(HS).

c) The duty free credit entitlement certificate and the goods imported thereunder shall be non-transferable.

Application for the duty free credit entitlement certificate shall be filed with the jurisdictional regional licensing authority in Appendix - 36A. The last date for filling of applications shall be 31st December.

The duty free entitlement certificate shall be valid for a period of 12 months. The service provider shall within one month of the expiry of the validity of the duty free entitlemnt certificate, submit a statement of imports made under the certificate as per Appendix - 36B to jurisdictional Regional Licensing Authority

 

 

Service providers (other than hotels and service providers in the tourism sector  fulfilling the criteria mentioned in paragraph 9.47 of the Policy shall be entitled to duty free credit for imports equivalent to 10% of the average foreign exchange earned by them in the preceding three licensing years.  However, hotels (one star and above), heritage hotels, stand-alone restaurants and other service providers in tourism sector approved and registered with Department of Tourism, Govt. of India, shall be entitled to duty free imports equivalent to 5% of the average foreign exchange earned by them in the preceding three licensing years. For one & two star hotels and stand-alone restaurant, the free foreign exchange earned through international credit cards only shall be taken into account for the entitlement under the scheme and the same would be vetted through a bankers statement that forms part of the application under Appendix 36A.

 

b.      All categories of Service providers will be entitled for benefits under the scheme subject to achieving a minimum total free foreign exchange of Rs 30 lakhs in the preceding 1/2/3 licencing years.

 

 

 

 

c.       The duty free credit entitlement certificate shall be used for import of any  capital goods including spares, office equipment(s) & professional equipment(s), office furniture(s) & consumables provided such goods are freely importable under ITC(HS).  However, import of agricultural products, dairy products, motor cars, sports utility vehicles and all purpose vehicles shall not be allowed even if such items are freely importable under ITC(HS).

 

d.      The benefit under this scheme is subject to actual user condition. The duty free credit entitlement certificate and the goods imported thereunder shall be non-transferable.

 

e.       A single consolidated application for the duty free credit entitlement certificate shall be filed with the jurisdictional regional licensing authority in Appendix-36A by the Registered office in case of a company and Head Office in case of others.    The last date for filing of such application shall be 31st December.

 

f.        Where the applicant is the branch office or the individual units of the service provider, it shall furnish (i) self certified copy of any valid documentary evidence such as tax return etc. Where the name of the branch/unit is given and (b) an authority letter from the Registered Office of a company or head office of a firm, clearly, indicating that the Registered/Head office or its branches and unit(s) have not been declared defaulter or otherwise made in eligible for import/export under any of the provisions of the policy.

 

g.       The Applicant can apply for split up of licence subject to the condition that each such licence will be of a minimum value of Rs.5 Lakhs and the applicant will be required to pay additional fee of Rs.1000/- per split up licence in addition to the application fee for the duty free entitlement certificate as per Appendix-29 of Handbook of Procedure. The request for split up licence shall be entertained only at the time of submission of initial application.

 

h.        The certificate holder intending to procure the item (s) from the indigenous sources/State Trading Enterprises  in lieu of direct import has the option to source them against  Advance Release Order (ARO) or invalidation letter, as the case may be, which shall be denominated in foreign exchange/Indian Rupees. 

 

i.         The entitlement can be used for import from private/public bonded warehouses subject to the fulfillment of provision of paragraph 2.28 of  Exim Policy and the terms and conditions of  the notification issued by Department of Revenue from time to time in respect of private/public bonded warehouses.

 

j.        The duty free entitlement certificate shall be valid for a period of 12 months.  The service provider shall within one month of the completion of imports made or the expiry of the validity of the duty free entitlement certificate whichever is earlier, submit a statement of imports made under the certificate as per Appendix-36B to the jurisdictional Regional Licensing Authority with a copy to the jurisdictional Excise authorities (service tax cell).

 

 

4.5

Advance licence for free of cost and paid material

 

In terms of paragraph 4.1.6 of the EXIM Policy, an exporter may apply for an Advance Licence for import of items mentioned in paragraph 4.1.1 of the Policy some of which may also include items that are supplied free of cost.

 

In such cases, a specific endorsement shall be made on the exchange control copy of the Advance Licence disallowing remittances for the material being supplied free of cost. All inputs imported shall be utilised in the manufacturing of the product except the wastage.




In terms of paragraph 4.1.6 of the EXIM Policy, an exporter may apply for an Advance Licence for import of items mentioned in paragraph 4.1.1 of the Policy some or all of which may also include items that are supplied free of cost.


In such cases, a specific endorsement shall be made on the exchange control copy of the Advance Licence disallowing remittances for the material being supplied free of cost. In case all the inputs are supplied free of cost , no exchange control copy of the advance licence would be issued. All inputs imported shall be utilised in the manufacturing of the product except the wastage.

 

4.7.1

Entitlement

 

However, in cases where ALC has already ratified the norms for the same export import product in respect of a licence obtained under paragraph 4.7, such norms shall be valid for a period of six months reckoned from the date of ratification. The licence holder in such cases shall be entitled for further licence(s) as per the norms ratified by ALC without the need for subsequent ratification by ALC. However, licensing authority after issuance of the licence shall forward such cases to ALC for consideration of fixation of Standard Input Output Norms. The total value of licence(s) obtained on such norms shall not exceed 100% of the FOB and/or FOR value of preceding year export/supply.

 

 

 

However, in cases where ALC has already ratified the norms for the same export import product in respect of a licence obtained under paragraph 4.7, such norms shall be valid for a period of six months reckoned from the date of ratification.  The licence holder in such cases shall be entitled for further licence(s) as per the norms ratified by ALC without the need for subsequent ratification by ALC.  In such cases the applicant would file the application under Adhoc Norms Fixed category.  Licences shall be issued by the Licencing Authority concerned under “ Adhoc Norms Fixed” category and in such cases the application copies need not be forwarded to the ALC for fixation/ratification of norms.  The total value of licence(s) obtained on such norms shall not exceed 100% of the FOB and/or FOR value of preceding year export/supply.

 

4.9(b)

In cases where SION specifically allows fuel, the same shall be permitted under advance licence. Alternatively, fuel may be allowed as per general fuel Policy for products covered under SION or under paragraph 4.7 or under adhoc SION.
 

In cases where SION specifically allows fuel, the same shall be permitted

under advance licence. Alternatively, fuel may be allowed as per general fuel Policy for products covered under SION or under paragraph 4.7.

 

4.9(C)

Fuel should be allowed only against an actual user licence and therefore fuel shall not be allowed for imports against DFRC which is transferable in nature.

 

Fuel should be allowed only against an actual user condition

 

4.12

Exports in anticipation of licence

 

Exports/supplies made from the date of receipt of an application for an Advance Licence by the licensing authority, may be accepted towards discharge of export obligation. If the application is approved, the licence shall be issued based on the input/output norms in force on the date of receipt of the application by the licensing authority in proportion to the provisional exports/ supplies already made till any amendment in the norms is notified. For the remaining exports, the Policy/ Procedures in force on the date of issue of the licence shall be applicable.

 

 

Exports/supplies made from the date of issuance of file number against an application for an Advance Licence by the licensing authority, may be accepted towards discharge of export obligation.  If the application is approved, the license shall be issued based on the input/output norms in force on the date of receipt of the application by the licensing authority in proportion to the provisional exports/supplies already made till any amendment in the norms is notified.  For the remaining exports, the Policy/Procedures in force on the date of issue of the licence shall be applicable.

 

4.13

Advance Licence or DFRC for Intermediate Supplies

 

The application for grant of Advance License for Intermediate supply may be made on the basis of a tie-up agreement with the exporter holding an Advance license for physical exports/deemed exports. Such requests shall be considered by the licensing authority concerned. The Advance License for Intermediate supply shall be issued after making the licence invalid for direct import of items to be supplied by the intermediate manufacturer.

 

In such cases, a copy of the invalidation letter will be given to the licence holder and copy thereof will be sent to the intermediate supplier as well as the licensing authority of the intermediate supplier. The licensee in such case has an option either to supply the intermediate product to holder of Advance Licence for physical exports/deemed exports or to export directly. The facility of advance licence for intermediate supply shall be available even in cases where the intermediate supplier has supplied or intend to supply the material subsequent to fulfilment of export obligation by the ultimate exporter holding the Advance Licence.

 

 

 

 

The application for grant of Advance License  or DFRC for Intermediate supply may be made on the basis of a tie-up agreement with the exporter holding an Advance license for physical exports/deemed exports or DFRC.  The licensing authority concerned shall consider such requests.  The Advance License or DFRC for Intermediate supply shall be issued after making the licence invalid for direct import of items to be supplied by the intermediate manufacturer. 



In such cases, a copy of the invalidation letter will be given to the licence holder and copy thereof will be given to the licence holder and copy thereof will be sent to the intermediate supplier as well as the licensing authority of the intermediate supplier.  The licensee in such case has an option either to supply the intermediate product to holder of advance Licence for physical exports/deemed exports or to export directly.  The facility of advance licence for intermediate supply shall be available even in cases where the intermediate supplier has supplied or intend to supply the material subsequent to fulfillment of export obligation  by the ultimate exporter holding the Advance Licence.

4.20.3

Facility of Clubbing

 

In case an Advance Licence(s), where export obligation has already expired, is to be clubbed with an Advance Licence(s) where export obligation period is valid, the applicant shall pay the composition fee of 1% or 5%, as the case may be, prescribed for extension of export obligation in respect of Advance Licence(s) where export obligation period has expired.

 

 

The facility is available only for Advance Licence(s) where there is shortfall in fulfillment of export obligation, and which is sought to be clubbed with an advance licence(s) which is valid for imports. For expired licence(s) with EO shortfall and which is sought to be clubbed with an advance licence(s) which is valid for imports ,the applicant shall pay the composition fee for E.O.P. extension as per the provision of paragraph 4.22.

 

4.20.4

Facility of Clubbing

 

In such cases, the exports effected 30 months after the issuance of the expired licence shall not be considered for clubbing.

 

 

In such cases, the exports effected 36 months after the issuance of the earliest licence shall not be considered for clubbing.

 

4.22.1

Export obligation period and its extension

 

The request for extension in export obligation period may be made in the form given in Appendix-10G. The regional licensing authority shall grant one extension for a period of six months from the date of expiry of the original export obligation period to the licensee subject to payment of


a) Composition fee of 1% of the unfulfilled FOB value of export obligation with reference to CIF value of imports made for which extension is being sought

 
Or
 
b) unfulfilled FOB value of quantity wise exports to be completed for fulfilling export obligation vis a vis the imports made ( in case of multiple inputs, the input with the highest import percentage quantity wise made is to be taken)whichever is higher.

 
Request for a further extension of six months may be considered by the regional licensing authorities subject to payment of composition fee of 5% of


a) the unfulfilled FOB value of export obligation with reference to CIF value of imports made for which extension is being sought
 
or
 
b) unfulfilled FOB value of quantity wise exports to be completed for fulfilling export obligation vis-à-vis the imports made (in case of multiple inputs, the input with the highest import percentage quantity wise made is to be taken)whichever is higher.

 

 

 

 

The request for extension in export obligation period may be made in the form given in Appendix-10G. The regional licensing authority shall grant one extension for a period of six months from the date of expiry of the original export obligation period to the licensee subject to payment of 2% of the duty saved on all the unutilized imported items as per licence;

Request for a further extension of six months may be considered by the regional licensing authorities subject to payment of composition fee of  5% of  the duty saved on all the unutilized imported items as per licence;

However any further extensions beyond 30 months upto a maximum period of 36 months from the date of issue of the Advance Licence or the duration of the contracted project (in the case of Advance Licence for Deemed Exports) or on the lapse of any other extension (s) granted by this office would be permitted on payment of the composition fee of 2%  per month of the duty saved on unutilized quantity  of all imported items as per licence;

 

4.24A (e)

The Advance Licence for Annual Requirement

 

The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have One port of registration for imports. Exports can take place from any port mentioned in paragraph 4.19.

 

 

 

The licence shall be valid for 12 months for imports and 18 months for exports from the date of its issuance. Each licence will have One port of registration for imports. Exports can take place from any port mentioned in paragraph 4.19. The regional licensing authority may consider a request of the license holder and grant one revalidation for a period of six months from the date of expiry of the original licence.  No further revalidation may be considered by the regional licensing authorities.  The regional licensing authority may also grant extension in export obligation  period in terms of paragraph 4.22  and 4.22.1 of the Handbook of Procedure subject to the payment of composition fee as prescribed therein.  Such export obligation  period extension should not exceed 12 months from the date of expiry of original export obligation  period of the licence.  The request(s) for revalidation of licence and/or extension of the export obligation  period shall be made in the form given in appendix-10G.

 

 

 

4.24B

Not Available

Added

 

Advance Licence for Annual Requirements for Intermediate Supplies

 

The provisions contained in paragraph 4.24A shall also be applicable to “Advance Licence for Annual Requirement for intermediate supplies” so far as they are not inconsistent with the following.  The facility of ‘Advance Licence for annual Requirement for intermediate supplies’ is available for the cases where the intermediate supplier intends to supply the material against invalidation letters issue to the holders of Advance license for physical exports/deemed exports.  In such cases, a copy of the invalidation which makes the licence invalid for direct import of  items to be supplied by the intermediate manufacturer will be given to the licence holder and copy thereof will be sent to the intermediate supplier as well as the licensing authority of the intermediate supplier.  Further the invalidation letters should also contain the licence number and date of ‘Advance Licence for annual Requirement for intermediate supplies’ to enable  proper accounting of the invalidation letters.  These would be submitted to the Licencing authority concerned by the intermediate supplier for the purpose of closure of licence.

 

4.31 

DFRC

 

Engineering/ Electronics

Alloy Steel including Stainless Steel / Copper Alloy / Synthetic Rubber / Bearings, Cables, IC’s, Diodes, PCB’s and Capacitors / Brass Scrap / Tungsten Filament /

Chemical and Allied Products

Carbon Black / Additives / Paper/ Paper Board / Printing Ink
/ Pigments
/ Paints/ Varnishes / Catalyst / Resin/ Resinoid / Synthetic Rubber / Dyestuffs / Solvent / Timber/ Sawn Timber/ Wood/ Veneer  / Perfumes/ Essential Oil/ Aromatic Chemicals /  Surfactants

Plastics

1. Plastic Films

Textiles

1. Relevant Fabrics

Miscellaneous

1. Marble

 

 

 

Alloy Steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Brass Scrap, Additives, Paper/ Paper Board, Dyestuffs, Solvent, Perfumes/ Essential Oil/ Aromatic Chemicals, Surfactants,  Relevant Fabrics, Marble.

4.34 

Time Period

 

The application for DFRC shall be filed within six months from the date of realisation reckoned from the last date of realisation in respect of shipments/supply for which DFRC is being claimed.

 

 

The application for DFRC shall be filed within six months from the date of realisation in respect of  all shipments or supplies for which DFRC is being claimed.

4.34.1

Time Period

 

In case of exports against irrevocable Letter of Credit, the DFRC shall be filed within six months from the date of exports/supply reckoned from the last date of exports/ supply in respect of which DFRC is being claimed.

 

 

In case of exports against irrevocable Letter of Credit, the DFRC shall be filed within six months from the date of all exports or supplies in respect of which DFRC is being claimed.

4.47

Time Period

 

The application for obtaining credit shall be filed within a period of six months from the date of exports or within three months from the date of realisation, whichever is later, reckoned from the last date of realisation/exports, in respect of shipments for which the claim have been filed.

 

 

The application for obtaining credit shall be filed within a period of six months from the date of exports or within three months from the date of realisation, whichever is later, in respect of shipments for which the claim have been filed.

4.47.1

Time Period

 

Wherever provisional shipment has been allowed by the customs authorities, DEPB against such exports shall be issued only after the release of the shipping bill by the Customs. In such cases, application for DEPB shall be filed within six months from the date of release of such shipping bill or three months from the date of realization, whichever is later.

 

Wherever provisional shipment has been allowed by the customs authorities, DEPB against such exports shall be issued only after the release of the shipping bill by the Customs. In such cases, application for DEPB shall be filed within six months from the date of release of such shipping bill or six months from the date of realisation, whichever is later.

5.3

Consideration of Applications

The applicant may apply for EPCG license wherein duty saved amount is upto Rs. 50 crores to the Regional Licensing Authority (RLA) on the basis of self-declaration subject to final fixation of nexus by the RLA. The applicant shall give an undertaking that in case the RLA subsequently disallows the Capital Goods including jigs, fixtures, dies, moulds and spares, the license holder shall pay customs duty as applicable together with 15% interest on such goods.

For the cases wherein duty saved amount is above Rs. 50 crores, the applicant may apply to DGFT headquarters directly with a copy endorsed to the concerned RLA. In such cases, based on the recommendations of Headquarters EPCG Committee which will also fix the nexus in these cases, the concerned RLAs will issue the EPCG License accordingly.

 

 

 

The applicant may apply for EPCG licence wherein duty saved amount is Rs. 50 crores, to the Regional Licensing Authority along with a certificate from the independent chartered engineer on the Performa annexed to appendix 9 certifying the end use of capital goods sought for import for its use at pre production, production or post production stage for the product undertaken for export obligation.

 

 

 

 

For the cases wherein duty saved amount is above Rs. 50 crores, the applicant may apply to DGFT Headquarters directly with a copy endorsed to the concerned RLA. In such cases, based on the recommendations of Headquarters EPCG Committee/ approval of competent authority the concerned RLAs will issue the EPCG licence accordingly.

5.3.1

Consideration of Applications

 

After issuance of an EPCG License wherein duty saved amount is upto Rs. 50 crores, a Committee of officers of the RLA, headed by the Head of Office, and the EPCG Committee in the Headquarters where duty saved amount in more than Rs. 50 Crores, shall finalize the nexus within the stipulated period of two months on the basis of the Chartered Engineer’s certificate and on the basis of EPCG nexus norms maintained by them. While finalizing the nexus, the provisions contained in the existing Export Import Policy/Procedures will be taken into account. In case, the Committee of officers at RLA fails to finalize the nexus within two months from the date of issuance of license the nexus as applied for shall be treated as final. However, where the application for fixation of nexus is rejected on account of non-furnishing of documents/information, the license holder shall be liable to pay customs duty as applicable together with 15% interest thereon.

 

 

 

The Licensing Authority, after issue of EPCG licence on the basis of certificate from the Independent Chartered Engineer (CEC) furnished by applicant shall forward a copy of licence along with copy of CEC to concerned Jurisdictional Central Excise Authority.

5.3.2

Consideration of Applications

 

Each RLA shall maintain a separate register sector-wise/industry-wise showing the CGs allowed against each export product/service on the basis of nexus already communicated by HQ in a case and on the basis of nexus cases regularized by the RLA themselves from time to time which should be referred to while examining the nexus cases and to regularize them.

 

 

The licence holder (whether registered with Central Excise Authority or not) shall produce to the concerned licensing authority a certificate from the jurisdictional Central Excise authority confirming installation of capital goods at the factory of the licence holder or his supporting manufacture(s)/vendor(s) within six months from the date of completion of imports.

5.3.4

Not Available

Added

Import of Spares including Refractories, Catalysts & Consumables

(i): The applicant may also apply for import of spares including refractories, catalyst and consumables under the EPCG Scheme . The application may contain list of plant/ machinery installed in the factory of applicant for which spares are required, duly certified by Jurisdictional Central Excise authorities irrespective of the fact whether the firm is registered with Central Excise or not.

In such cases EPCG licence shall not specify the list of spares but shall indicate:-

(a) Name of plant/machinery for which spares are required.

(b) Value of duty saved allowed under the licence.

(c) Description of product to be exported with value of export obligation as per the Policy.

 

(ii) The licensing authority, after issue of EPCG licence for spare shall forward a copy of licence  to concerned Jurisdictional Central Excise Authority.

 

(iii)      In case of import of spares for capital goods, the licence holder (whether registered with Central Excise Authority or not) shall produce the licensing authority a certificate by the jurisdictional central excise authorities confirming the inventory of spares taken in the records of the licence holder within one month of the date of completion of each import.  Further at the time of final redemption of export obligation licence holder shall submit certificate from the Independent Chartered Engineer confirming the use of spares so imported in the installed capital goods on the basis of stock & consumption register maintained by licence holder.

 

5.7.3

Condition for fulfilment of export obligation

 

Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d), (f), (g) & (j) of Policy shall also be counted towards fulfilment of export obligation alongwith the usual benefits available under paragraph 8.3 of the Policy. Royalty payments received in freely convertible currency and foreign exchange received for R& D services shall also be counted for discharge under the EPCG scheme.

 

Added


“Payment received in rupee terms for the port handling services provided by the service provider in terms of paragraph 9.47 (iv) of the Exim Policy shall also be counted for export obligation discharge under the Scheme.”

5.7.7

Not Available

Added

 

Condition for fulfillment of Export obligation

 

The Export Obligation shall be fulfilled by the export of product(s)/ services originally specified  in the EPCG licence which are capable of being manufactured/ produced by the use of the capital goods imported under the licence.  In case, the licencee is unable to fulfill the export obligation by the products/ services mentioned above, he shall apply to the concerned licensing authority any time during the validity period (including the extended period) of export obligation giving reasons (supported by documentary evidence, if any,) for their inability to fulfill the export obligation by the products/ services originally specified in the licence along with the details of the alternate product(s) manufactured/services provided by the same firm /company or group company and intended to be exported along with documents evidencing manufacturing of such product/ service being provided by the same firm/ company or group company.  He shall also furnish the details of average exports of the past three years for the alternate products/ services intended to be exported duly certified by Chartered Accountant. The licensing authority shall thereafter re-fix the average export obligation by taking into account the average exports of alternate products/ services made during the preceding three licensing years with reference to the year in which such re-fixation has been done and shall also endorse the licence for Product(s)/ services(s) to fulfill the balance export obligation.  The re-fixed average export obligation shall be applicable from the financial year during which it has been done.

 

Notwithstanding the above, the original average Export obligation shall not be required for the remaining period provided the licencee does not want to export the original products/services in the remaining export obligation period.

 

The licencee can also opt for the re-fixation of the balance export obligation based on 8 times of the duty saved amount for the CIF value in proportion to the balance Export obligation under the scheme.

 

The aforesaid facilities shall be available for exports made on or after the date of application received for endorsement of alternate items and/ or the re-fixed export obligation  subject to endorsement made on the licence subsequently irrespective of the date of issuance of licence, provided the export obligation period  including extended export obligation period is valid.

 

5.9

Monitoring of Export Obligation

 

The licence holder shall produce to the concerned licensing authority a certificate from the jurisdictional Central Excise authority or by an independent Chartered Engineer, confirming installation of capital goods at the factory of the licence holder or his supporting manufacturer(s)/ vendor(s) within six months from the date of completion of imports.

 

Deleted

5.11.1

Not Available

Added

 

Extension of export obligation period

 

The firm/company or group company registered within the original/extended E.O. period with the BIFR or state rehabilitation Scheme for SSI unit as a sick unit or any firm/company acquiring a unit, which is under BIFR may apply for extension in export obligation period for fulfillment of export obligation to Director General of Foreign Trade.

 

The firm/company, which is applying for registration with BIFR/ Rehabilitation Department of State Government shall also intimate DGFT with regard to relief sought for EPCG licence, if any, within 30 days of receipt of the application by agency concerned.  The DGFT, on receipt of intimation/notice received from the BIFR/operating agency/ Rehabilitation Department of State Government shall take up the matter with the agency concerned to safeguard government interest on account of default in fulfillment of export obligation imposed on EPCG licence obtained by such firm.

 

DGFT may consider such application for grant of extension in the period of export obligation upto 12 years or as per the rehabilitation package prepared by operating agency and approved by BIFR broad/state authority, on its merit.