Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Epcg -capital goods

N.SRIDHAR (Senior executive- Import&Export) (49 Points)

23 April 2013

Dear Sir,

I have imported Capital goods under EPCG in the year 2005 and still not fulfilled the obligation.

Now i want to export 2 machines from the imported goods, can i export and what are the permissions reqd to do the export.

any related notifications please provide...

Thanks and regards

Reply
Follow
Share

1 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 27 April 2013

it seems that your E.O. could not fulfilled i am right? Although you must fulfilled the E.O. within 8 year YEAR otherwise you will be penalisesd.

Noted:

Import of capital goods at zero percent Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date.

Import of capital goods at 3 percent 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 issue-date.

Zero duty EPCG Scheme is not available for import of capital goods relating to export of products covered under following Chapters / headings of ITC(HS) classification:

Chapters: 1 to 24, 25 to 27, 31, 40, 43, 44, 45, 47 to 49, 68 to 70, 71, 81 (metals in primary and intermediate forms only), 89, 93, 97, 98.

ITC(HS): 7201 to 7212, 7218 to 7220, 7224 to 7226, 7401 to 7406, 7501 to 7504, 7601 to 7603, 7801, 7802, 7901 to 7903, 8001, 8002 and 8401.

However, zero duty EPCG Scheme is available for handicraft exports under Chapters 5, 44, 68, 97.

Second hand capital goods, without any restriction on age, may be imported under EPCG scheme. Import of motor cars, sports utility vehicles/all purpose vehicles are allowed for hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts, subject to the certain conditions.
For agro units, and units in cottage or tiny sector, import of capital goods at 3% Customs duty is allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods in 12 years from Authorization issue-date.
For SSI units, import of capital goods at 3% Customs duty is allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods in 8 years from Authorization issue-date.

Additionally, the exports made under the following category can be counted towards fulfillment of export obligation imposed on EPCG Licence;

Shipments made under Advance Authorization, Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorization (DFIA), Duty Entitled Pass Book (DEPB) or Drawback scheme, or any other incentive schemes.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services
Payment received in rupee terms for port handling services