Want to import second hand printing machine

An advantageous scheme for procurement of Capital Goods

• The EPCG scheme allows import of new capital goods (including CKD/SKD thereof as well as computer software systems and spares, jigs, fixtures, dies and moulds) at NIL Customs duty as against the normal total of 25.852%, thus providing a total duty saved of import value. This is subject to an Export Obligation (EO) equivalent to 6 times of duty saved, to be fulfilled over a period of 6 years reckoned from the date of issuance of license. For large projects, units in North East, SSI etc. there are more relaxed norms of EO.
• The scheme covers manufacturer exporters with or without supporting manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and Service Providers.

• Actual user conditions: Import of capital goods are subject to Actual User condition till the export obligation is completed.
• Export obligation: The export obligation needs to be fulfilled by the export of goods capable of being manufactured or produced by the use of the capital goods imported under the scheme. Deemed Exports like supplies to Mega Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc. can also be utilized to fulfill the EO

• Indigenous Sourcing: A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying capital goods to EPCG license holders shall be eligible for refund of Excise Duty paid by him. In addition the indigenous supplier can import his own raw material duty free and other benefits which can be discussed.

The scheme is quite beneficial to Manufacturer exporters as they can import their CG at a substantial discount. Especially for those manufacturers whose final product is not excisable or is exempt from excise duty (like those in Uttaranchal) since they cannot take the CENVAT credit of the CVD paid on imports and Excise Duty paid in Domestic markets.

Merchant Exporters

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tied with the supporting manufacturers can also utilize the scheme for concessional duty import of Capital Goods to be installed at the supporting manufacturers.