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Circular No. 131/95-Cus.
dated NIL
F.No. 605/166/95-DBK
Government of India,
Ministry of Finance
Department of Revenue, New Delhi

Subject: Amendment of Notifications under Duty Exemption Scheme and EPGG Scheme for recovery of interest in case of default

Attention is invited to Ministry’s telex of even number dated the 21st Sept, 1995 whereby amendments made to Notifications under Duty Exemption Scheme and Export Promotion Capital Goods (EPGG) Scheme were communicated. Copies of the Notification Nos. 140/95-Csutoms to 147/95-Csutoms all dated 19th September, 1995 have also been forwarded with post copy of the said telex. These notification have amended respectively Notification No. 107/ 95-Customs, 80/95-Csutoms, 160/95-Customs, 10/95-Customs, 128/94-Customs, 111/95-Customs,110/95-Csutoms and 79/95-Customs.

2. The effect of the amendments are as under:-

(a)  The requirements of execution of Bond/ Legal Undertaking with the Licencing authorities and production of evidence in this regard has been done away with.

(b) In case of non-fulfilment of the conditions of the notifications, interest at the rate of 24% per annum on the duty becoming payable shall also be recoverable from the date of clearance of imported goods till the date of payment; and

(c) The exporter will be required to produce evidence to the satisfaction of the Assistant commissioner of Customs regarding discharge of export obligation (other than the certificate from the Licencing authority) and compliance with other condition of the notification.

3. The requirements of seeking a certificate from the Licencing authority in evidence of discharge of export obligation has been done away with and the exporter is now required to produce evidence of discharge of export obligation to the satisfaction of the Assistant commissioner of Customs directly. Such evidence in case of exports made under Duty Exemption Scheme should be in the form of endorsement in Part F of DEEC Book by the proper officer of the Customs supported by DEEC (triplicate) copy of the relevant Shipping Bill and Bills of Lading. Under the E.P.C.G Scheme, a statement of export  signed by the exporter and certified by the Chartered Accountant, supported  by export promotion copies of Shipping Bills with respective Bill of Lading cold be accepted as evidence of discharge of export obligation. The statement should also include a declaration from the exporters confirming that  goods exported  were manufactured using the capital goods imported under the E.P.C.G. Scheme against the particular licence.

4. Change made in the notification may please be brought to the notice of public through suitable public Notice and also departmental orders issued for guidance of the staff.

(A.K. Madan)
Under Secretary to the Govt. of India

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