Subject : Import of Irrigation equipment for use in contract farming under EPCG Scheme and for export of Agro Products- regarding
A copy of Notification No. 13(RE : 98) 1997-2002 dated 14.8.1998 regarding the above subject issued by the D.G.F.T. is enclosed. This Notification is issued with a view to enabling the importation and use of irrigation equipments under EPCG for export of agro-products. It may also be imported by EPCG Licence holder and installed in the premises of a contract manufacturers, of a supporting farmer’s premises, where the equipment will be located and put to use.
2. In this regard attention is also invited to Notification No. 42/ 98-Customs dated 30.6.1998. This notification has amended the four existing EPCG Notification No. 110/ 97-Cus. and 111/95 – Cus. both dated 5.6.1995 and 28/ 97-Cus. and 29/97-Cus. both dated 1.4.1997 so as to inter alia provide that in case of import of capital goods under EPCG Scheme, a certificate from the Chartered Engineer confirming installation and use of such capital goods in importers premises is furnished to the Assistant Commissioner of Customs. In cases where the importer wants to put the imported irrigation equipment in to use at other premises for contract farming in terms of DGFT’s Notification No. 13 (RE: 98) 1997-2002, the importer shall submit :-
(i) a list containing the full name and address of the person (s) / premise (s), to the Assistant Commissioner of Customs where the equipments will be installed and used;
(ii) furnish a certificate from the Chartered Engineer to the effect that the irrigation equipment has been installed for use in declared premises for manufacture and export of agro products and will not be moved to any premises other than those mentioned in the list and certified by the Chartered Engineer;
(iii) the above facility will be available provided that the ownership of the imported irrigation equipment rests with the EPCG Licence holder who will undertake in the Bond / LUT not to transfer or sale the equipment till the Export Obligation is fulfilled.
3. Customs Houses may issue suitable standing orders for the guidance of the staff.
dated the 14th August, 1998
In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 ot 1992) read with Paragraph 1.3 of the Export and Import Policy, 1997-2002 (incorporating amendments made up to 13.4.1998), the Central Government hereby makes the following amendments in the Export and Import Policy, 1997-2002, (incorporating amendments made up to 13.4.1998).
Paragraph 6.3 (a) may be amended to read as follows :
“Under the Scheme, manufacturer exporters, merchant exporters tied to supporting manufacturer (s) and service providers are eligible to import capital goods. For agricultural exports, import of irrigation equipments may be allowed provided ownership of these equipments rest with the EPCG licence holder, such equipments are not sold or leased and list of places where the equipments are to be located in made available to the jurisdictional Asst.
2. This issues in Public interest.