The Director General of Foreign Trade (DGFT) has issued a policy circular to provide relaxation in the provision of submission of ‘Bill of Export’ as an evidence of export obligation discharge for supplies made to the Special Economic Zone (“SEZ”) units in case of the Export Promotion Capital Goods (“EPCG”) Authorization.
The requirement of submitting ‘Bill of Export’ for supplies made to SEZ is prescribed under the Foreign Trade Policy. Recently, the requirement of submission of Bill of Export for supplies made to SEZ in case of Advance Authorisation has been relaxed vide Policy Circular No. 39 dated June 07, 2022.
The policy circular stated that “the issue has been examined and in terms of Para 2.58 of the FTP 2015-2020 (extended up to September 30, 2022), it has been decided to relax the condition of requirement of submission of ‘Bill of Export’ in case of exports made to SEZ units under EPCG Authorization, for all such supplies made prior to April 01, 2015.”
“Accordingly, for the purpose of discharge of export obligation under EPCG Authorizations, in case of supplies made to SEZ units prior to April 01, 2015, the exporters can submit corroborative evidence in lieu of ‘Bill of Exports’ such as:
a. ARE-I form duly attested by jurisdictional Central Excise authorities of EPCG authorization holder.
b. Evidence of receipt of the supplies by the recipient in the SEZ.
c. Evidence of payment made by the SEZ unit to the EPCG authorization holder,” the circular said.
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