Acceptance of Installation Certification under EPCG Scheme by RAs

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(To be Published in the Gazette  of India Extraordinary Part I, Section-I)

Government of India

Ministry of Commerce and Industry

Department of Commerce

Directorate General of Foreign Trade

Udyog Bhawan

Public Notice No.30/2015-20

New Delhi, Dated the 14th August, 2018

Subject:- Acceptance of installation certificate under EPCG Scheme by the RAs, wherein installation certificate is submitted beyond 18 months, without penalty

In exercise of powers conferred under Paragraph 2.04  of FTP (2015-20) read with Paragraph 2.58  of FTP (2015-20),   the Director General  of Foreign Trade in public interest hereby makes the one time relaxation  in procedure in respect of acceptance of installation certificate under the EPCG Scheme.

1. Under  the  EPCG  Scheme,   the  authorization  holders  are  required  to  submit  the installation certificate showing installation of the capital goods to the RA within the prescribed time period.

2. Sometimes, the submission of installation certificate to the RAs was not within the time prescribed on account of various reasons,  including delay in installation of the machinery/delay in issuance  of installation  certificate etc.  The EPCG Committee was receiving requests for condonation of time period  of submission of installation  certificate to the Regional authorities. Some of such  requests for condonation were considered  by the EPCG Committee on payment of composition fee of Rs.5,000/-

3. As a facilitative measure,  Public Notice No.37/2015-20   dated 10.2017  was issued permitting one time relaxation for condonation of time period upto 31.03.2018 condoning the delay in submission  of installation certificate on payment of penalty of Rs.5000/- per authorization (provided  the installation has happened within the period of  18  months).  The benefit  of  said  Public  Notice  was  further  extended  upto  30.09.2018  vide  Public  Notice No.O  1/2015-20   dated 26.04.2018.

4. There have been representations  from the Trade for accepting the submission of installation certificate without insisting on penalty,  if the installation has happened within the specified time  prescribed. The contention in the representations is that as per their understanding, of the para 5 .3 .1  of HBP (2009-14),  there was no time limit for submission of the installation certificate and the time limit was only for the installation of machinery. It has also been pointed out that in the past, some RAs have accepted the installation certificate even at the time of redemption. Therefore, it has been requested not to impose any penalty for these authorizations.

5. The issue has been considered. The submission of installation certificate is an important aspect of monitoring of the EPCG  Scheme which  cannot  be postponed till  the completion of the EO pe The intent of the para of the HBP was clearly that the capital goods were to be imported,  the installation  certificate obtained and presented to the RAs within the time period in the said para. The reading of the relevant custom notification for the EPCG Scheme also  makes it clear that the installation certificate was to be produced within the period specified. However,  it is contended  by some that they could  interpret  the para under  the HBP (2009-14) that  the period  applies only for installation/obtaining the certificate   and  they can provide the same to the RAs anytime even at the time of redemption.

6. Taking  into account the representations in this regard  and to facilitate  the ease of doing business   for  the  purpose, it has been decided to permit the RAs to accept the installation certificate without insisting  for penalty  in  respect of authorization issued upto 03.2015 as long as the  installation has happened within 18 months from the date of import, provided  the EPCG  authorization is not under any investigation/ adjudicated by RA/customs authority/  any other investigative agency.  This relaxation will be available upto  31.03.2019. There will not be any refund of the penalty already paid under the Public Notice No.37/2015-20      dated 25.10.2017.

7. The other terms  and conditions in  the Public  Notice  No.37/2015-20 dated  25.10.2017 and  Public  Notice   No.01/2015-20 dated 26.04.2018 consistent with this Public Notice  will continue  to be applicable. Effect  of this  Public Notice:  One time relaxation and condonation of delay in submission of installation certificate  to RAs under EPCG Scheme for authorizations issued upto  31.03.2015, without payment  of any penalty.

(Alok Vardhan Chaturvedi)

Director  General of Foreign Trade

Email: dgft@,


(Issued  from F.  No.18/96/AM-19/P-5)