There is one Merchant Exporter. They are also having their own ships which are sailing on rent on yearly basis. They receive rent in rupees.
At present one ship is under construction and they want to Import Marine Diesel Engine (value USD 100000 appx.) and then it will be installed in ship and after completion ship will be given on rental basis.
Can they apply for 3 % EPCG authorization for duty free import of engine? They have confusion in this matter as to applicability of EPCG autho. Because there will be no export item in result. Only income is rent in Indian rupees or in foreign exchange. Which is earning of foreign exchange but not export of goods.
Also, in online application it is not accepting without details of export items and its HS codes etc.
Please guide in above matter.
CAclubindia
