Dear Friends :
I am a new members of this forum. I am very much impressed by joining this forum. I have some clarification with regard to Customs formalities.
Our Company is establishing a green field Cement Plant and our MD's brain is the technical know-how for this project. We are importing major cement machineries from overseas suppliers and we have applied for EPCG licence for concessional customs duty and EPCG licence has been issued to our Company by JDGFT, Hyderabad. JDGFT, Hyderabad issued EPCG Licence under 0% Customs Duty (under chapter 5.1 of Foreign Trade Policy under Customs Notification No. 102/2009 instead of 103/2009) payable by us but with 8 times of Duty Saved amount as export obligation as cement will be related export product which we have to fulfil in eight years period which means more than Rs. 100 Crores will be our cement export obligation. If not fulfilled the amount will be recovered from us with government rate of interest per annum on prorata basis. When we approached Customs Authorities for completing the EPCG formalities we have been informed that cement is comes under Cpater 25 of Customs Tariff as such it not covered for export under Customs Notification No. 102/2009 and also as per Foreign Trade Policy (Chapter 5.1and advised us to get the EPCG licence amend to Customs Notification No. 103/2009. It is really suprised how such senior bureaucrats like JDGFT heading a Regional Office will issue such licence and cheat a Corporate Company.
Even it quite surprised that even senior customs officials like Dy. Commission, Additional Commissioner, etc. at Chennai Customs could not help us out in this regard and no one is familiar with thorough customs notification. However, concerned Assessing Officer is well versed with Customs Notification clearly clarified that JDGFT, Hyderabad intentionally issued this EPCG licence and put ourselves into lot of inconvenience. With this wrong issuance of EPCG licence we have incurred heavy demurrage and still we could not take delivery of the consignment.
Can any one advise on this matter why Bureaucrats function like this and misuse their powers towards public. Is is a correct method of functioning. How our nation will develop.
Regards,
VK SWAMY
