Epcg closure

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 RECENTLY IN OCT 13, CUSTOMS NOTIFIED FOR CLOSURE OF EPCG DEFAULTERS. ONE OF MY CLIENT IMPORTED THE CAPITAL GOODS DURING 2002 UNDER EPCG SCHEME BY PAYING CONCESSIONAL DUTY OF 5%. AS PER EPCG SCHEME, THEY ARE LIABLE TO EXPORT 5 TIMES OF CIF VALUE. AFTER THE COMPLETION OF ALL THE BLOCK YEAR, THEY APPROACHED DGFT FOR EXTENSION OF 2 YEARS BY PAYING 2% FEE. TILL THAT TIME, THE COMPANAY COMPLETED ONLY 9% OF EXPORT OBLIGATION. SUBSEQUENTLY, THE COMPANY AGAIN APPROACHED DGFT FOR FURTHER EXTENSION OF 2 YEARS BY PAYING 50% OF CUSTOMS DUTY SAVED PROPORTION TO THE UNFULFILLED EO. DGFT CONSIDERED 9% AS FULFILLED AND DECLARED 91% AS UNFULFILLED EO. THE COMPANY PAID ACCORDINGLY 50% CUSTOMS DUTY SAVED. NOW THEY WANT TO CLOSE AS PER THE NEW CIRCULAR 40/2013. CUSTOMS DEPT. IS INSISTING TO PAY 100% CUSTOMS DUTY SAVED WITHOUT CONSIDERING 9% EO FULFILLED. ARE THEY CORRECT.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 February 2014 for regularilisation you must paid all the Cd alongwith interest shortfall .

i can handle the case if you send me the documents and can speak after examination .

please send me all details

ramesh.arti@sify.com

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 Thanks for your reply. My client has already approached the customs department. Since the customs department is not accepting the 9% EO fulfiled to get adjusted in the customs duty saved. They are demanding to pay the full customs duty saved instead of 91% of customs duty saved. I want to know whether their demand is correct and if yes under what notification.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 February 2014 this case is submitted to DGFT IN PRC MEETING on the accepting the extension eo

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2014 First extention is with ref to policy cir 33/2007 by paying 2%. Second extension by paying 50% customs duty. In both the cases, for calculation, they considered the 9% export made by us.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 February 2014 what is query right now...

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2014 Thanks for your response. My client has fulfilled only 9% EO even after 12 years.(after 2 extensions) Now want to close the EPCG by paying CD and interest thereon. While paying 2% fee for first extension and 50% duty for the 2nd extension, the calculation was done considering 9% export made. Now, AO is calculating to pay the full CD without considering this 9% export citing circular No 49/2000. Is it correct.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 February 2014 actually i can say after examine the copy of licence , bill of entry, extension letter so that after examine i can say in the light of foreign trade policy.

regards,

ramesh verma

export import consultant

ramesh.arti@sify.com

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