9911796707
TMI BlogConcessional duty of 5% on Capital goods, components of capital goods and spares imported under (EPCG) scheme - EXIM Policy 1997-2002 - CIF CriteriaX X X X Extracts X X X X X X X X Extracts X X X X ..... customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of 5% 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 section 3A] of the said Customs Tariff Act. 2. The exemption contained in paragraph 1, shall be subject to the following conditions, namely:- (1) The goods imported are covered by a valid licence issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of paragraph 6.2 of the Export and Import Policy permitting import of goods at the rate of 5% duty and the said licence is produced for debit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of total export obligation 1 2 3 1. Block of Ist ,2nd, 3rd, 4th and 5th year Nil 2. Block of 6th, 7th and 8th year 15% 3. Block of 9th and 10th year 35% 4. Block of 11th and 12th year 50% Provided further that where a sick unit notified by the Board for Industrial and Financial Reconstruction (BIFR) is subsequently taken over by another unit for revival, the export obligation may be fulfilled within a period of 12 years from the date of issue of license: Provided also that export obligation of a particular block may be set off by the excess exports made in the said preceding blocks(s); (3) The importer produces within 30 days from the expiry of each block of two years from the date of issue of licence or within such ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendent Chartered Engineer, as the case may be, is produced confirming installation and use of the capital goods in the importer's factory or premise, within six months from the date of completion of imports or within such extended period as the said Assistant Commissioner of Customs or Deputy Commissioner of Customs referred to in condition (2) above may allow] Provided that in the case of,- (i) manufacturer exporter and merchant exporter having supporting manufacturer(s)/ vendor(s), (ii) import of irrigation equipment 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit for use, the said goods may be re-exported back to the foreign supplier within 3 years from the date of payment of duty on the importation thereof. Provided that at the time of re-export, the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported. 4. where the total exports of a sector or product group during the year 2007-08 has declined by more than 5% as compared to the year 2006-07, the average export obligation of the licencee for 2007-08 may be reduced proportionate to the reduction in exports of that particular sector /product group during 2007-08 as against 2006-07 1[5. In a case of default in export obligation, when the duty on goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Government of India in the Ministry of Commerce, No.1 (RE-99)/1997- 2002, dated the 31st march, 2000. (3) "Licensing Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act; (4) "export obligation", - (i) in relation to importers other than those rendering services, means export to a place outside India of products manufactured with the use of capital goods imported, assembled or manufactured in terms of this notification or making of supplies of such products in terms of clauses (a), (b), (d), (e), (f) and (g) of paragraph 10.2 of the Expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted vide Not. 26/2017 - Dated 29-6-2017, 1st day of July, 2017 , before it was read as. "under sections 3 and 3A" 3. Substituted vide Not. 26/2017 - Dated 29-6-2017, 1st day of July, 2017 , before it was read as. "The capital goods imported, assembled or manufactured are installed in the importer's factory or premise and a certificate from the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise or any independent Chartered Engineer, as the case may be, is produced confirming installation and use of capital goods in the importer's factory or premise, within six months from the date of completion of imports or within such extended period as the said Assistant Commissioner of Customs or Deputy Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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