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TMI BlogConcessional duty of 5% on Capital goods, components and spares imported under the EPCG Scheme - EXIM Policy 2002-07 - duty saved criteriaX X X X Extracts X X X X X X X X Extracts X X X X ..... the First Schedule to the Customs Tariff Act, 1975 (51of 1975) as is in excess of the amount calculated at the rate of five percent ad-valorem and from the whole of the additional duty and special additional duty leviable thereon respectively 2[under sub-sections (1), (3) and (5) of section 3] and 3A of the said Customs Tariff Act. 2. The exemption under this notification shall be subject to the following conditions namely:- (1) that the goods imported are covered by a valid licence issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Export and Import Policy permitting import of goods at the rate of five percent duty and the said licence is produced for debit by the proper officer of customs at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 15% 3. Block of 9th and 10th year 35% 4. Block of 11th and 12th year 50% Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled in terms of Paragraphs 5.5.1 of the Export and Import Policy. Provided also that export obligation of a particular block may be set off against the excess exports made in the said preceding block(s); (3) that the importer produces within 30 days from the expiry of each block from the date of issue of licence or within such extended period as the Deputy Commissioner of Customs or Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment for use in contract farming for export of agricultural products; and (iii) importer rendering services; the capital goods may be installed at the factory or premises of such other person whose name and address are endorsed on the licence referred to in condition (1) and where the bond for full difference of duty, if necessary, in terms of condition (2), with a bank guarantee is executed by the importer and such other person binding themselves jointly and severally to fulfil the export obligation and all other conditions of this notification and to pay duty with interest at the rate of 15% per annum in case of default; (5) that the imports and exports are undertaken through sea ports at Mumbai, Kolkata, Cochin, Magdalla, Kakinada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jadanga and Changrabandha or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act, 1962 (52 of 1962). (6) notwithstanding anything contained in condition (3) above, where the Licensing Authority grants extension of block - wise period for any block(s) or overall period of fulfillment of export obligation upto a period of two years or regularization of shortfall in export obligation, not exceeding five percent of such export obligation, the said block-wise period or overall period of export obligation shall be extended/condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be: Provided that in respect of sick units as specified in the second provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be payable as specified in the said public notice dated the 1st April, 2023.] TABLE S.NO. Description of goods 1 2 1. Capital goods for pre production, production and production including second hand capital goods upto 10 years old. 2. Capital goods in SKD/CKD conditions to be assembled into capital goods by the importer 3. Components of capital goods required for assembly or manufacture of capital goods by the importer. 4. Spare parts of goods specified at Serial Nos.1, 2,and 3 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured. 5. Spares for the existing plant and machinery of the licence holder Explanation - In this notification,- (1) "Capital Goods" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and Import Policy; or (e) export of other goods manufactured by the importer; (ii) in relation to importers rendering services, means, receiving payments in freely convertible foreign currency for services rendered through the use of capital goods. Provided that in respect of units holding license both as manufacturer exporter and service provider, the export obligation may be fulfilled either by export of products specified in clause (i) or by receiving payments in freely convertible foreign currency for services rendered through the use of such capital goods. Provided further that in respect of group companies as defined in the Companies Act, 1956 (1 of 1956), where licence has been issued to any one of the group company, the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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