Epcg-export obligation

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Naresh (Querist)

18 August 2016 Provided also that spares (including refurbished or reconditioned spares), moulds, dies, jigs, fixtures, tools and refractory for initial lining, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation specified above in case of separate authorisation issued, subject to the condition that the Cost, Insurance and Freight (CIF) value of import of the said spares etc. is limited to 10% of the CIF value of the plant and machinery imported under the EPCG authorisation or 10% of the book value of the plant and machinery imported earlier otherwise than under EPCG Scheme, as the case may be.

Above information extracted from customs notification no:22/2013.From that I understood tool imported under EPCG scheme during the period FTP 2009-2014 are needed only 50% of Export obligation of normal Export Obligation for the purpose of the redemption. Please clarify my intention regarding Export Obligation of tools is 50% of normal Export Obligation correct...

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)

18 August 2016 Dear Naresh, the export obligation would be 50% on the duty saved amount of tools, spares, etc imported subject to the condition that their CIF value does not exceed 10% of the plant and machinery imported earlier against EPCG license or its 10% book value.

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