POL CIR NO. 18/(RE-99)/1999-2000 Dated 7-7-1999

POL CIR NO. 18/(RE-99)/1999-2000 Dated 07-7-99

Clarification regarding grant of EPCG Licence on debonding.

Attention is invited to Para 9.27 of Exim Policy, 1997-2002 (RE: March, 1999) read with para 6.7 of Handbook of Procedure, (Vol.1), 1997-2002 (RE:March,1999). Accordingly, an EOU/EPZ/EHTP/STP unit may be permitted by the concerned Development Commissioner, as a one time option, to debond under the prevailing EPCG Schemes.

2. In the Exim Policy, 1997 -2002 (RE: March, 1999) effective from 1.4.1999, Second Hand Capital Goods is not allowed for import under EPCG scheme. A doubt has been raised, whether an EOU /EPZ/EHTP/STP unit which had imported second hand capital goods can now debond under EPCG scheme or not. In this context, it is clarified that in view of paragraph 9.27 of Exim Policy, 1997-2002 and para 6.7 of Handbook of Procedures, 1997-2002 (RE: March, 1999), debonding of these units under EPCG scheme can be allowed.

3. This issues with the approval of DGFT.

Sd/-
(L.S. Singhal)
Joint Director General of Foreign Trade

F.No.01/92/180/00259/AMOO/PC.II
Dated 7th July, 1999
Issued by:
Ministry of Commerce
Directorate General of Foreign Trade
New Delhi.