EPCG Licence

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HS Reddy (Querist)

30 July 2010 Hi,

could you please let me know the procedure to take EPCG licence and take the refund

thanking you

HS Reddy

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

30 July 2010 DEAR REDDY JI,

EPCG LICENCE SCHEME IS VARIOUS ATTRACTIVE BENEFIT FOR THE EXPORTER AND IMPORTER IN INDIA.

This scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals & allied products and leather & leather products; subject to exclusions as provided in HBPv1.

For SSI units, import of capital goods at 3 % Customs duty shall be allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods, in 8 years from Authorization issue-date, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs. 50 lakhs and total investment in plant and machinery after such imports does not exceed SSI limit.

An EPCG Authorization can also be issued for import of capital goods under Scheme for project Imports notified by the Central Board of Excise and Customs under S.No. 441 of Customs Exemption Notification No. 21/2002 dated 01.03.2002Export obligation for such EPCG Authorizations would-be eight times (6 times for zero duty EPCG scheme) of duty saved. Duty saved would be difference between the effective duty under aforesaid Customs Notification and
Concessional duty under the EPCG Scheme.

LUT/Bond or 15 % BG ( as applicable) may be given for EPCG Authorization granted to units in Agri Export Zones provided EPCG Authorization is taken for export of primary agricultural product(s) notified in Appendix 8or their value added variants.

Shipments under Advance Authorization, DFRC, DFIA, DEPB or Drawback scheme, or incentive
schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.

AS PER FTP 2009-2014:-
Before clearance of goods through Customs, Authorisation holder shall execute a BG/LUT with customs authorities. In such cases, RA shall endorse the following condition on / the licence/ Authorization:

Import of capital goods shall be subject to Actual User condition till export obligation is completed.

if you wanted to acquire more information and knowledge go to the folowing path:-
dgft.gov.in

Regards

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