EXPORT OF GODDS IMPORTED UNDER EPCG SCHEME

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..... EXPORT OF GODDS IMPORTED UNDER EPCG SCHEME
Query (Issue) Started By: - B C CHORDIA Dated:- 9-8-2014 Last Reply Date:- 9-8-2014 Customs - Exim - SEZ
Got 3 Replies
Customs
Dear Sir, We have imported Gas Base Gen Set (capital goods) under EPCG Scheme in 2011 now due not viablity due increase in gas price these gen set lying ideal and we want to export to other country we have fulfilled .....

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..... 60% export obligation. now we ready to pay pro rata duty with interest for unfullfilled export obligation. can we do the same if yes please briefly inform the procedure Reply By Pradeep Khatri: The Reply: Dear B.C.Chordia, Please check the para 5.17 of the HBP Vol.1 read with chapter 5 of the FTP 2009 - 2014 which enumerates, that In case of failure to fulfill export obligation or any oth .....

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..... er condition of authorization, authorization holder shall be liable for action under FT (DandR) Act, 1992, Orders and Rules made thereunder, provisions of FTP and Customs Act, 1962. You can remove Capital goods as re-export under Section 74 of the Customs Act,1962. after seeking the permission from the Board. However you would not be able to get the duty drawback. Regards Team YAGAY and SUN ( .....

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..... Management and Indirect Tax Consultants) Reply By B C CHORDIA: The Reply: We ready to fore go duty draw back but export will be not to same supplier. please guide us to get permission Reply By Pradeep Khatri: The Reply: Dear B.C.Chordia, There is no restriction in Section 74 of the Customs Act, 1962 that capital goods must be exported to the same person, but it can be any customer. You would .....

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..... have to seek permission from the CBEandC for exporting the capital goods out of country. You may draft an application, stating all material facts, ( i.e.from importing under EPCG to partial fulfillment of export obligation, applied for redemption and after payment of applicable duties, and submitting the documentary evidence to Customs Department/Central Excise Department to the level of their sa .....

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..... tisfaction, you want to remove the capital goods as export out of India) and submit it before CBEandC. CBEandC may put some conditions to safeguard the revenue and grant permission accordingly. On the basis of this permission, you may export the Capital Goods. Regards Team YAGAY and SUN (Management and Indirect Taxation)
Discussion Forum - Knowledge Sharing .....

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