Import from china, clearing done by our client under epcg

OPTIONS AVAILABLE TO YOU

1. YOU CAN IMPORT THE GOODS IN YOUR NAME FROM FOREIGN SUPPLIER, POST DESPATCH OF GOODS FROM ORIGIN AND BEFORE IT TOCUHES INDIA, YOU CAN SELL  THE GOODS ON TO YOUR BUYER,  THIS IS CALLED HIGH SEA SALES.  YOU BUYER WILL FILE THE PAPERS WITH CUSTOMS, CLEAR UNDER EPCG. SUCH TRANSACTIONS ARE EXEMPTED FROM VAT/CST.

2.  THERE IS AMBIQUITY  WITH REAGRD TO SALE TAX APPLICABILITY ON SALE FROM CUSTOMS BONDED WAREHOUSE, THERE ARE VARIOUS COURT RULING IN POSITVE AND NEGATIVE SIDE,

what are the payment terms in case of high sea sales? 

HIGH SEA SALES BUYER ( YOUR BUYER WHO IS BUYING GOODS FROM YOU) WILL REMIT YOU PAYMENT IN INDIAN RUPEES AGAINST YOUR INVOICE IN INR.  ( ON THE TERMS AGREED BETWEEN BOTH OF YOU), THEREAFTER  POST CLEARANCE THEY WILL PROVIDE YOU A COPY FO EXCHANGE CONTROL COPY OF BILL OF ENTRY, AGAINST THE B/E YOU WILL REMIT PAYMENT TO FOREIGN SUPPLIER...

if we have import the consignment on our name & its in the custom bonded warehouse & our buyer wants to buy this consignment from custom bonded warehouse against epcg liecense , can the buyer do that? 

YES  YOU CAN DO SO... BUT I HAVE ALREADY EXPLAINED THERE ARE AMBIQUITY WITH REGARD TO SALE TAX LEVY ON SUCH TRANSACTIONS. SALES TAX DEPT HAVE BEEN DEMANDING SALES TAX ON ALL  SUCH SALE FROM CUSTOMS BONDED WAREHOUSES....

In high sea sales, the payment terms are against L/C & some shipping company don't provide the shipment in L/C mode.? so L/C is the only payment term avaialble in high sea sales or what other payment terms we can have instead of L/C?

PAYMENTS TERMS ARE NOT A CONDITION FOR HIGH SEA SALES, YOU CAN HAVE ANY PAYMENT TERMS ( LC, DA, 30 OR 60 DAYS CREDIT) STILL DO HIGH SEA SALES.

ONLY CONDITION IS THAT THE SALE HAS TO BE EFFECTED THROUGH TRANSFER OF TITLE OF GOODS/ HSS AGREMENT.  THIS HAS TO BE DONE POST DESPTACH OF GOODS  FROM ORIGIN AND BEFORE IT TOCHES INDIAN TERRITORIAL BORDERS...

HOPE ITS CLEAR...

thanks,

can you please tell about the difference epcg & epch scheme?

EPCG AND EPCG SCHEME ARE ONE AND THE SAME THING.

THERE ARE TWO EPCG SCHEME

1. FIRST ONE IS EPCG WITH 3% DUTY. THREE PERCENT IS DUTY OF CUSTOMS SO NOT CENVATTABLE, UNDER THIS YOU HAVE TO EXPORT 8 TIMES OF THE DUTY SAVED IN 8 YEARS

2. SECOND ONE IS EPCG WITH 0% DUTY- UNDER THIS YOU HAVE EXPORT 6 TIMES OF DUTY SAVED IN 6 YEARS, THIS IS AVAILABLE TO THOSE EXPORTERS WHO HAVE NOT CLAIMED ANOTHER BENEFIT OF EXIM POLICY I.E SHIS SCHEME IN THE SAME FINANCIAL YEAR.

RULE SAYS YOU CANNOT CLAIM SHIS AND 0% EPCG SCHEME IN SAME FINACIAL YEAR

HOPE ITS PRETTY CLEAR NOW...

Its Difference between EPCG & EPCH ?

EPCG ALREADY EXPLAINED,  EPCH I MEASURE INTIATED BY THE TGOVT TO PROMOTE EXPORT OF HANDICARFTS.  DETAILS OF THE SCHEME AND BENEFITS GIVEN BELOW 

READ BELOW

EXPORT PROMOTION COUNCIL FOR HANDICRAFTS

ANALYSIS OF THE FOREIGN TRADE POLICY 2009- 2014

ANNOUNCED ON 27.08.2009 WITH REFERENCE TO

HANDICRAFTS EXPORTS

Foreign Trade Policy 2009-2014 was announced by Hon’ble Minister

of Commerce and Industry on 27th August, 2009. The major

highlights of the FTP is placed at Annexure I. A special thrust

has been given to labour intensive handicrafts sector which is

witnessing job losses in wake of the recession. A brief analysis on

the provisions made in the new FTP in particular with the

handicraft sector are placed below:

PROVISIONS SPECIFIC TO HANDICRAFTS SECTOR

1. Three handicrafts clusters provided status of ‘Towns of

Export Excellence’(TEE) (New Provision)

Jaipur, Srinagar & Anantnag have been announced as Towns

of Export Excellence for the handicrafts sector. This would

enable upgradation of infrastructure and would provide

incentives and focus support.

2. All handicrafts exports to be treated as ‘Special Focus

Products’ and entitled to 5% duty credit scrip as per S. No.

1B (vi) (g) of the new Foreign Trade Policy. (New Provision

covering all items of handicrafts – however, a limited

number of items were earlier covered under VKGUY)

All handicrafts exports would now be treated as ‘Special Focus

Products’ and entitled to higher incentives as per Sl. No.

3.15.2 . Special Focus Products covered under Table 2 & Table

5 of Appendix 37D, shall be granted i.e. duty credit scrip

equivalent to 5% of FOB value of exports w.e.f. 27.08.2009.

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3. 43 items added to the ‘New Special Focus Products’ list.

EPCH had requested for inclusion of all handicraft for focused

promotion by way of higher incentives. The O/o DGFT under

the New Foreign Trade policy has now included 43 additional

items as ‘New Special Focus Products’ including Handicrafts

items not elsewhere specified. The efforts have yielded good

results.

These 43 items appears in Table No. 5 of Appendix 37D of the

new Handbook Book of Procedures Vol-I. They shall be entitled

to duty credit scrip @ 5% of fob value.

The handicraft items not elsewhere specified are now also

eligible under “New Special Focus Products’ scheme as per

entry No. 43 of Table 5 of Appendix 37D of Handbook of

procedures. Earlier only selected items were eligible for

the same. This entry will cover all new and innovative

handicrafts items.

Export Promotion Council for Handicrafts shall now

certify that the exported product is a handicrafts product,

if any doubt arises.

4. EPCG at zero custom duty for Technological Upgradation.

The recommendation of EPCH to reduce the custom duty on

EPCG (Export Promotion Capital Goods) from 3% to 0% has

been accepted.

Now EPCG shall be available at 0% custom duty for

handicrafts sector .The export obligation shall be six times of

the custom duty saved to be fulfilled in six years. The scheme

shall be in operation till 31.03.2011.

5. Status holder to get duty credit scrip.

To accelerate exports and encourage technological

upgradation, additional Duty Credit Scrips shall be given to

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Status Holders @ 1% of the FOB value of past exports. The

duty credit scrips can be used for procurement of capital

goods with Actual User condition. This facility shall also be

available for handicrafts. This facility shall be available

upto31.3.2011.

All status holders will get duty credit scrips at the rate of 1%

of the value of past exports. The duty credit scrips can be used

for procurements of capital goods but subject to actual user

condition.

6. Support for Green products and products from North East

Focus Product Scheme benefit extended for export of ‘Green

Products’; and for exports of some products originating from

North East.

7. MDA/MAI

Higher allocation for Market Development Assistance (MDA)

and Market Access Initiative (MAI) schemes is being provided.

Special funds have been earmarked for the handicrafts sector.

GENERAL PROVISIONS MADE IN FTP INCLUDING HANDICRAFT

8. Focus Market Scheme - 26 new markets have been added

under Focus Market Scheme. These include 16 new markets

in Latin America and 10 in Asia-Oceania.

The incentive available under Focus Market Scheme (FMS) has

been raised from 2.5% to 3%.

9. Market Linked Focus Product Scheme (MLFPS) - Market

Linked Focus Product Scheme (MLFPS) has been greatly

expanded by inclusion of products classified under as many as

153 ITC(HS) Codes at 4 digit level. Some major products

include; Pharmaceuticals, Synthetic textile fabrics, value

added rubber products, value added plastic goods, textile

madeups, knitted and crocheted fabrics, glass products,

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