F. No. 01/36/218/88/AM09/EPCG-I
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New DelhiOnline GST Certification Course by TaxGuru & MSME- Click here to Join
Dated the 30th April, 2009
Policy Circular No. 84 (RE-2008)/2004-09
Subject: Terms and conditions for issue of EPCG authorizations to EOU units after conversion to DTA unit-Regarding
Attention is invited to Circular No.79 dated 1.4.2009 regarding terms and conditions for issue of EPCG authorizations to EOU units after conversion to DTA unit. The matter has been reviewed in light of Policy Circular No.35(RE:99) dated 1.10.99 (copy enclosed). Sub-Para 2 (b) of Circular No.79 dated 1.4.2009 is clarified to read as under:
(i) If a standalone EOU / EPZ unit wishes to debond from EOU to EPCG Scheme, there shall be no export obligation for maintenance of average and the unit shall be required to maintain only additional export obligation equivalent to six/eight times of the depreciated value.
(ii) In case one unit of a firm / company opts to debond from EOU to EPCG Scheme, while other unit(s) are DTA units, then the average export obligation in respect of the licences issued to the firm / company (other than debonding unit) shall remain unchanged and the average EO after debonding of the unit shall be fixed by excluding the exports made by the debonded unit from the total exports of the firm / company, which runs concurrently for all the units of the firm / company. In such a case, an additional EO equivalent to six/eight times of the depreciated value would be imposed on the debonding unit shifting to the EPCG Scheme.
This issues with the approval of DGFT.
Joint Director General of Foreign Trade