What exactly is Project finance scheme and what are the implication and modalities?
What exactly is Project finance scheme and what are the implication and modalities?
The ‘Project Import Scheme’ is an Indian innovation to facilitate setting up of and expansion of industrial projects. Normally, imported goods have to be classified ‘on merits’ under the Customs and Excise Tariffs for levy of duty. This implies that each individual article has to be classified separately and assessed to appropriate duty not only for the purposes of customs duty but also for the purposes of Countervailing Duty (CVD). For setting up of a ‘Project’, a number of goods may be imported in one or many consignments. If all goods required for the project are to be classified and valued separately for assessment to duty, the process becomes cumbersome. This may lead to delay in clearance of goods. Further, the suppliers, while sending goods for a contracted project, do not value each and every item or parts of machinery manufactured and supplied in stages. Ascertaining values for different items further delayed assessment on merits and leading to demurrage and time and cost overruns for the project. The project import assessment provisions introduced in Customs Tariff in 1965 and continued ever since facilitate early and quick assessment by simplifying the process of classification and valuation of goods required for a project.
for more information:
https://customsmangalore.gov.in/faq/faq-project_imports.htm
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