debonding of capital goods -procedure

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Pradeep Kumar S (Querist)

01 February 2010 Hi everyone,

Could anyone please let me know the procedure for debonding of capital goods from an eou as one of our client wants to do the debonding.

Please help me in this regard.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

01 February 2010
DEAR PRADEEP JI,

PLEASE FIND HEREWITH THE INFORMATION SOUGHT BY YOU:-

PROCEDURE FOR DEBONDING OF EQUIPMENT:-

EOU units are permitted to de-bond the equipment as per the following norms:

a) In case an EOU unit is unable , for valid reasons to utlise the Imported goods/Indigenous items, it can re-export or dispose them in DTA on payment of applicable duties & submission of import licence by the DTA unit , wherever applicable.

b) EOU will permit the De-bonding of the equipment after 3rd year of operations provided the unit has met its Export Obligation. On the basis of the DC approval, customs will charge Customs Duty on depreciated cost of the equipment. The depreciated norms notified from the customs from time to time.

c) STPI can permit de-bonding of equipment even before 3 years, which have become technologically obsolete. However, units will have to pay Customs Duty as per norms of customs. Application for the same is to be made to STPI giving details/reasons for obsolescence and other details similar to that of De-bonding of equipment.
Documents Required:

i) A request letter from the Company as per format along with details of Goods to be debonded
ii) Copy of original import certificate and enclosures issued at the time of procurement.
iii) Annexure giving details of Bill of Entry No. and date, bond no. and date, description of goods, Qty and assessable value as per the bill of entry duly signed by authorized signatory and company stamp.
iv) Copy of original invoice along with Bill of entry in case of imports.
REGARDS,
RAMESH KUMAR VERMA

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