9911796707
TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs Tariff Act, 1975( 51 of 1975), as may be provided in the notification issued under Department of Revenue. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include: i. Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof; ii. Computer software systems; iii. Spares, moulds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and iv. Catalysts for initial charge plus one subsequent Charge.] (b) Import of capital goods for Project Imports notified by Central Board of Excise and Customs is also permitted under EPC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods in the factory / premises of the supporting manufacturer (s). In case of any change in supporting manufacturer (s) the RA shall intimate such change to jurisdictional Central Excise Authority of existing as well as changed supporting manufacturer (s) and the Customs at port of registration of Authorisation. (b) Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated / certified as a Common Service Provider (CSP) by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receding three licensing years for same and similar products. (c) In case of indigenous sourcing of Capital Goods, specific EO shall be 25% less than the EO stipulated in Para 5.01. (d) Shipments under Advance Authorisation, DFIA, Drawback scheme or reward schemes under Chapter 3 of FTP; would also count for fulfillment of EO under EPCG Scheme. (e) Export shall be physical export. However, deemed exports as specified in paragraph 7.02 (a), (b), (e), (f) & (h) of FTP shall also be counted towards fulfillment of export obligation, alongwith usual benefits available under paragraph 7.03 of FTP. (f) EO can also be fulfilled by the supply of ITA-I items to DTA, provided realization is in free foreign exchange. (g) Royalty payments received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 7.03 of FTP and as may be provided under GST Rules under the category of Deemed Exports. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfilment of positive NFE by said EOU as provided in Para 6.09 (a) of FTP.] 5.08 Calculation of Export Obligation In case of direct imports, EO shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, EO shall be reckoned with reference to notional Customs duties saved on FOR value. 5.09 Incentive for early EO fulfilment With a view to accelerating exports, in cases where Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e specific EO under the EPCG Scheme. However, average EO shall remain unchanged. (d) Duty remission shall be in proportion to the EO fulfilled. (e) All provisions for utilization of scrips issued under Chapter 3 of FTP shall also be applicable to Post Export EPCG Duty Credit Scrip (s). (f) All provisions of the existing EPCG Scheme shall apply insofar as they are not inconsistent with this scheme. --------------------------- Notes:- 1. Substituted vide Not. 35/2015-2020 - Dated 29-1-2016 before it was read as, "(g) Authorisation under EPCG Scheme shall not be issued for import of any Capital Goods (including Captive plants and Power Generator Sets of any kind) for" 2. Substituted vide Not. 35/2015-2020 - Dated 29-1-2016 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing duty (CVD) is paid in cash on imports under EPCG, incidence of CVD would not be taken for computation of net duty saved, provided CENVAT is not availed."
7. Substituted vide Notification No.33/2015-2020 dated 13-10-2017, before it was read as,
"5.07 Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier
A person holding an EPCG authorisation may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 7.03 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfilment of positive NFE by said EOU as provided in Para 6.09 (a) of FTP."
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