NOTIFICATION NO. 5(RE-99)/1997-2002 Dated the 19th April, 1999EPCG
-Export obligation norms changed
Exim Policy
-Heading of Chapter 4 changed
In exercise of powers conferred by section 5 of the Foreign Trade (Development andRegulation) Act, 1992 (No. 22 of 1992) read with paragraph 1.3 of the Export and Import Policy,1997-2002 (incorporating amendment made upto 31.3.99), the Central Government hereby makesfollowing amendments in the Export and Import Policy, 1997-2002: (incorporating amendment madeupto 31.3.99).
1. The main heading of chapter 4 shall be corrected to read as "GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS'.
2. The words and expression 'HS Classification of Exports and Import items' appearing after the words and expression ' ITC(HS) Classifications of Export and Imports items' in paragraph 4.1 and 4.10 shall stand deleted.
3. The table given under paragraph 6.2 shall be corrected to read as under:
| Customs Duty | Export Obligation | Period |
| FOB Basis | NFE Basis |
| 10% | 4 times CIF value of capital goods | Not applicable | 5 years |
| Zero duty (in case CIF value is Rs.20 cr. or more) | 6 times CIF value of capital goods | 5 times CIF value of capital goods | 8 years |
a) Zero duty in case CIf value is Rs.1 Cr. or more for electronics, food processing, textiles, plastic leather, sports goods, gem & Jewellery sectors and produce and products of agriculture, aquaculture, animal Husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, Sericulture.
Bio-technology sector, the following sub-sectors of Engineering sectors;
Machine tools, parts & accessories thereof; automotive components and accessories; bicycle parts and accessories; handtools, cutting and small tools; castings and forgings (ferrous and non-ferrous) all sorts; pumps, electric motors and parts thereof, fasteners, all types (ferrous and non-ferrous); bright bars and shafting; scientific and surgical instruments and the following sub sectors of chemicals;
Drug and drug intermediates, Dyes and Dyes intermediate, inorganic chemicals, organic chemicals | 6 times CIF value of Capital goods | 5 times CIF value of Capital goods | 6 years |
| (b) Zero duty in case CIF value is Rs.10 lakhs or more for Software sector. | 6 times CIF value of capital goods | 5 times CIF value of capital goods | 6 years |
4. The word 'average' appearing in second sub paragraph 7.4A shall stand deleted.
This issues in public interest.
Sd/-
(N. L. Lakhanpal)
Director General of Foreign Trade and ex-officio
Additional secretary to the Government of India
Presented by eximkey.com