CHEMEXCIL
BASIC CHEMICALS, COSMETICS & DYES EXPORT PROMOTION COUNCIL
(Set-up by Ministry of Commerce & Industries, Govt. of India)
Jhansi Castle, 7, Cooperage Road, Mumbai - 400 001.
Tel : 22021288, 22021330, Fax : +91 22 22026684
E-mail : info@chemexcil.gov.in , Website : www.chemexcil.in
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EPC/LIC/EPCG 22nd July, 2016.
ALL MEMBERS OF THE COUNCIL
Closure of EPCG authorizations in case of supplies to SEZ units which have been made prior to 01.04.2015 and where exports proceeds have not been realized through Foreign Currency Account (FCA) of the SEZ unit
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Dear Members,
We would like to inform you that the O/o DGFT, New Delhi has issued Trade Notice No.10/2016 dated 20 th July2016 regarding Closure of EPCG authorizations in case of supplies to SEZ units which have been made prior to 01.04.2015 and where exports proceeds have not been realized through Foreign Currency Account (FCA) of the SEZ unit.
As an effect of this trade notice, the closure/redemption/EODC may be allowed in cases where EPCG authorisation holder has made supplies to SEZ units and has not realised the proceeds from the Foreign Currency Account (FCA) provided that the supplies have been made prior to 1.4.2015.
However, it is further clarified that Para 5.11 of HBP 2015-20 under the current FTP provides that exports to SEZ units /supplies to developers /co-developers shall be taken in to account for discharge of EO provided payment is realised from Foreign Currency Account of the SEZ unit. Hence condition of Para 5.11 of HBP 2015-20 shall have to be complied in respect of EPCG authorisations issued under FTP 2015 -20. Besides, Para 5.11 of HBP shall also be applicable in respect of EPCG authorizations issued under the earlier policies but where exports have been made on or after 01.04.2015 or payments have been realised after 31.03.2015.
Members are requested to take note of the same and for further details may use below link to download Trade Notice No.10/2016 dated 20 th July2016.
http://dgft.gov.in/Exim/2000/TN/TN16/TN102016.pdf
Thanking You,
Yours faithfully,
(S.G.BHARADI)
EXECUTIVE DIRECTOR
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