Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhavan. New Delhi.
Policy Circular No.22/2015-20
Dated 29th March 2019
To,
1. All Exporters/Members of Trade
2. Regional Authorities of DGFT
3. All Customs Authorities
Subject:- EPCG Scheme - Applicability of amendment to Para 5.10(c) of Hand
Book of Procedures 2015-20 (Mid-Term Review).
This Directorate has received references from the trade and RAs seeking
clarification regarding the applicability of para 5.10(c) of HBP 2015-20 on
third party exports. The matter has been examined in consultation with the
Department of Revenue.
2. Para 5.10 (c) of HBP (2015-20) (updated as on 5.12.2017) states that :-
"In case the Authorization Holder wants to export through a third party,
export documents viz., shipping hills / Bill of exports etc. shall indicate name
of both authorization holder and supporting manufacturer, if any, along with
EPCG authorization number. BRC, GR declaration, export order and invoice should
be in the name of third party exporter. The goods exported through third party
should be manufactured by the EPCG Authorisation Holder or the supporting
manufacturer where the capital goods imported under the authorisation have been
installed. Proceeds realised through normal banking channel from third party
exporter's account to the authorisation holder's account on account of such
exports only shall be counted towards fulfilment of export obligation."
(Text in bold is an amendment incorporated in the mid-term review)
3. It is clarified that the amendment to the para 5.10(c) of HBP 2015-20 shall
be applicable to third party exports made on or after 05.12.2017. Third party
exports which have been made prior to 05.12.2017 will be governed by the
provisions of the relevant policy/procedure.
4. Accordingly, in the case of third party exports, an authorisation holder can
count till 04.12.2017 the full realised value of the shipping bill towards
fulfilment of export obligation subject to counting of exports only once towards
the EPCG obligation and maintenance of Average Export Obligation.
5. All the shipments made 05.12.2017 onwards will be counted towards Export
Obligation only for the actual payment realised through the normal banking
channel from the third party exporter's account to the authorisation holder's
account.
6. This issues with the approval of the Director General of Foreign Trade.
(Rajbir Sharma)
Joint Director General of Foreign Trade
Tele No. 23061056
rajbir.sharma@nic.in
Refer:- Judgement dated 21.12.2023 South Gujarat Warp Knitters Association