Import duty on Car

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Jayanta Chowdhury (Querist)
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03 July 2010 Please someone provide me latest EPCG gudilines for Hotels and what are the conditions appliacble under EPCG to import car for Hotel Use

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 July 2010 DEAR MR. CHOUDHARY,

IN PRESENT , THIS FACILITY IS AVAILABLE FOR ONLY HOTEL, TOUR OPERATOR AS PER EXIM POLICY 2009-2014 PARAGRAPAH 5.5 Concessional 3% Duty
Concessional 3 % duty EPCG scheme allows import ofEPCG Scheme capital goods for pre production, production and postproduction (including CKD/SKD thereof as well as
computer software systems) at 3 % Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issuedate.In case of agro units, and units in cottage or tiny sector, import of capital goods at 3 % Customs duty shall beallowed subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods imported, in 12 years from Authorization issue-date.

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. 5 0 lakhs and total investment in plant
and machinery after such imports does not exceed SSI limit.

However, in respect of EPCG Authorization with a duty
saved amount of Rs. 1 00 crores or more, export obligation
shall be fulfilled in 12 years.

In case CVD is paid in cash on imports under EPCG,
Incidence of CVD would not be taken for computation of
Net duty saved, provided the same is not CENVATed.
Capital goods shall include spares (including refurbished/
Reconditioned spares), tools, jigs, fixtures, dies and
Moulds.

Second hand capital goods, without any restriction on age, may also be imported under EPCG scheme.
However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts, subject to the condition that:
(i) total foreign exchange earning from hotel, travel & tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1 .5 crores or more.

(ii) ‘duty saved’ amount on all EPCG Authorizations issued in a licensing year for import of motor cars, sports utility vehicles/ all purpose vehicles shall not exceed 5 0% of average foreign exchange earnings from hotel, travel & tourism and golf tourism sectors
in preceding three licensing years.

(iii) vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the Registration certificate should be submitted to concerned RA as a confirmation of import of vehicle.
However, parts of motor cars, sports utility vehicles/all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme.

FOR MORE INFORMATION log on to:- dgft.gov.in

regards

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