The Managing Directors/CEO's/Owners/Director/Partners/General Managers             
All FHRAI Members                

CC:      All Members of the Executive Committee       
            All Regional Associations  

SUB: DETAILS OF SPECIALISED PRODUCTS REQUIRED TO BE IMPORTED BY THE HOSPITALITY INDUSTRY

Dear Member,

As you are aware, the EPCG Scheme allow import of capital goods for pre-production, production and post production at zero customs duty and subject to fulfilment of specific export obligation. This scheme has helped the hospitality sector in India immensely to emerge as a strong player in the global tourism market, by procuring capital goods as per international standards and quality.

However, the Government of India is now planning to discontinue the EPCG scheme presuming that the scheme is hampering growth of domestic capital industry in the country.

In this context, a delegation of FHRAI held a meeting with Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry and senior officials of DGFT on 20th January 2022. The important points discussed during the meeting include; to continue the EPCG Scheme, to grant waiver of secondary condition for the EPCG licenses taken from 2008 onwards and to take corrective measures to address the problems faced by the hospitality industry due to ambiguities in the Copyright Act, among others.

Regarding the issue of continuation of EPCG Scheme, the delegation highlighted that hotels import high end products such as light fixtures, kitchen equipments, energy saving electrical appliances, carpets etc. since they need to cater to the global market as per the requirements of the clientele and the products should maintain specific global standards.

In this regard, FHRAI has been advised to submit a list of such items that are not available in Indian market as per the specific requirement of the hospitality sector in terms of technology, quality standards, price competitiveness etc. due to which the industry is compelled to import the same.

Members are therefore requested to share the details of capital goods which are either not available in India or are heavily compromised on the expected standards. 

Please share the details of such products by email to eatosg@fhrai.com,  as per the format given below,  latest by Monday, 24th January 2022 to enable us to submit to the Ministry of Commerce & Industry for a favourable decision on this important benefit for the hospitality sector. 

With best regards,

Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com