EPCG & EOU

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Amit Shah (Querist)
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07 August 2008 One dealer is setting up a new unit at different place and it will only job-work at that unit ( Raw material will be provided by customer and client will use consumable and its machinery for production). Customer is situated in Maharashtra and it is an EOU. Machinery required for unit II is Imported Machinery. Now we have folloing alternatives:-
a) Get Registered as EOU: We will sale the goods to another EOU and that party will do the export. (Benefits - duty free import of machinery)

b) Apply for EPCG : (Benifits - import of machinery at concessional rate of 3%)

c)Just take regular Excise registration and not to avail any benefits [Drawbacks : We have to pay customs duty (basic & CVD) ]

Sir, please guide about the appropriate alternative that the we should take.

ravi

ravi (Expert)
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14 August 2008 Dear Sir,

As per my knowledge, its better to get EPCG, where you will get the concessional rate of 3%, if you have exports then you can complete export obligation, or if u sell to another EOU and they will export, then you can also use their documents for discharge of your export obligation.

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