GOVERNMENT OF
INDIA
MINISTRY OF COMMERCE &
INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN
TRADE
Policy Circular
No. 5
(RE-2005)/2004-2009 Date:
13th May’2005
To
1.
All
Licensing Authorities
2.
Development Commissioners of SEZs
3.
EOU
Division of Deptt. of Commerce
Subject: Supplies made from 100% EOU to EPCG licence holder in DTA
- clarification thereon.
Attention is invited to para 6.9(a) of Foreign
Trade Policy, 2004-09, in terms of which
supplies by EOU/EHTP/STP/BTP
Units in the DTA under EPCG Scheme are counted for the purpose of fulfillment of
positive NFE. Representations have been received
drawing attention to the fact that in the absence of any specific
Customs/Central Excise
notification for exempting payment of Central Excise on such supplies, the
units are facing difficulties in removal of goods from the EOUs.
2.
The matter has been considered in consultation with Central Board of
Excise & Customs. It is,
accordingly, clarified that since EPCG Scheme is implemented through end use
based notifications, the goods being cleared from an EOU under EPCG Scheme would
attract a Central Excise Duty equal to aggregate of effective customs duty leviable on like goods imported i.e. Duty
calculated after applying end use based notification as per circular dated 15.9.1994 issued from CBEC
F.No.305/83/94-FTT. Therefore,
EOUs can clear goods under EPCG licence at concessional rate of
duty and there is no requirement for any other separate exemption notification
in this regard.
3.
This issues with the approval of DGFT.
Sd/-
(P.K.Santra)
Dy. Director General of Foreign
Trade
For Director General of Foreign Trade