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 ..... be sold as scrap/waste on payment of applicable duty by the authorisation holder. (b) An application for amendment in the list of import item(s) including addition(s)/deletion(s), if any, may be filed with RA concerned provided the authorisation is valid for import. The applicant would give justification for seeking such amendment(s) along with fresh nexus certificate from an independent Chartered Engineer. (c) An application for amendment in the list of export item(s) including addition(s)/deletion(s) if any, may be filed with RA concerned provided the Export Obligation period of the authorisation is valid and the CG has nexus with export product. The applicant would give justification for seeking such amendment(s) along with fresh nexus certificate from an independent Chartered Engineer. 5.04 Certificate of Installation of Capital Goods (a) 1 [ Authorization holder shall produce, within 3 years from date of completion of import, to the concerned RA. a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods/spares at factory/premises of authorization holder or h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to EPCG Scheme would be the same as is available to a direct EPCG Authorisation holder as per paragraph 5.01 of FTP. (c) If a standalone EOU / SEZ unit wishes to de-bond from EOU to EPCG Scheme, there shall be no requirement for maintenance of average export obligation and the unit shall be required to maintain only specific export obligation equivalent to six times of the proportionate duty saved amount of the depreciated value of capital goods for which the Authorisation has been obtained. (d) In case one unit of a firm / company opts to de-bond from EOU to EPCG Scheme, while other unit(s) are DTA units, then the average export obligation in respect of the authorisations issued to the firm / company (other than de-bonding unit) shall remain unchanged and the average EO, after de-bonding of the unit, shall be fixed by excluding the exports made by the de-bonded unit from the total exports of the firm/ company, which runs concurrently for all the units of the firm/ company. In such a case, specific EO equivalent to six times of the proportionate duty saved amount on the depreciated value of the Capital Goods would be imposed on the de- bonding unit shifting to the EPCG Scheme. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall also be applicable for fulfillment of export obligation: (a) Name of the supporting manufacturer as well as the exporter shall be indicated on export documents. (b) In case the Authorisation holder wants to export through a third party, export documents viz., shipping bills/Bill of exports etc. shall indicate name of both authorisation holder and supporting manufacturer, if any, along with EPCG authorisation number. Shipping bill/Bill of Export, GST invoice and e-BRC/ export realisation from RBI s EDPMS should be in the name of third party exporter. The goods exported through third party should be manufactured by the EPCG authorisation holder or the supporting manufacturer where the capital goods imported under the authorisation have been installed. The goods manufactured by the authorisation holder shall be exported as it is by the ultimate exporter (third party exporter) without further processing. Proceeds realised through normal banking channel from third party exporter s account to the authorisation holder s account on account of such exports shall only be counted towards fulfillment of export obligation. (c) Disclaimer certificate from third party that they shall not us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme shall, while maintaining the average export obligation, fulfill the specific export obligation over the prescribed block period in the following proportions: Period from the date of issue of Authorisation Minimum export obligation to be fulfilled Block of 1st to 4th year 50% Block of 5th and 6th year Balance EO (b) The Authorisation holder would intimate the Regional Authority on the fulfilment of the export obligation, as well as average exports, within three months of completion of the block. (c) 3 [ Request for extension of Export Obligation period of first block shall be submitted within 6 months from the date of expiry of first block EO period along with composition fee as under :- Duty Saved value of EPCG Authorisation issued Composition fee to be levied (in Rupees) Up to Rs. 2 Crores 5,000 More than Rs. 2 Crores to 10 Crores 10,000 Above Rs. 10 Crores 15,000 RA may consider the request for extension of block-wise EO period, received after 6 months, but within 6 years from date of issue of authorisation, with composition fee as under :- Duty Saved value of EPCG Authorisation issued Composition fee to be levied (in Rupees) Up to Rs. 2 Crores 10,000 More than Rs. 2 Crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... average EO (wherever applicable). ] 5.15 Automatic Reduction/Enhancement upto 10% Duty saved amount and pro rata Reduction/Enhancement in export obligation If authorisation issued has been utilized for import of goods:- (a) In excess of duty saved amount indicated on the authorisation by not more than 10%, the authorisation shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of such goods without endorsement by RA concerned. The authorisation holder shall furnish additional fee to cover excess imports effected, in terms of duty saved amount, to RA concerned, at the time of application for EODC. Export obligation shall automatically stand enhanced proportionately. (b) In excess of duty saved amount indicated on the authorisation by more than 10%, the RA concerned, as per its delegated powers, may allow enhancement in duty saved amount of the EPCG authorisation. The Authorisation holder shall furnish additional BG/LUT to the Customs Authority. (c) Less than the duty saved amount indicated on the authorisation, the export obligation shall stand reduced on pro-rata basis with reference to actual utilization of the authorisation. 5.16 Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sector/product group during the relevant year as against the preceding year. However, in case export decline is continuous over consecutive years, the base year for calculation of eligibility and calculation of reduction in average export obligation will be taken as the year after which the exports have shown continuous decline. (b) The sectors /product groups for which this relaxation is to be allowed shall be conveyed by the DGFT to all the RAs within seven months of the end of the previous financial year and the RAs shall re-fix the annual average EO for previous year accordingly for exporters in that sector/ product group. 5.18 Maintenance of Annual Average Export Obligation The excess exports done towards the average export obligation fulfilment of an EPCG authorisation during a year can be used to offset any shortfall in the Average EO done in other year(s) of the EO period or the block period as the case may be provided Average EO imposed is maintained on an overall basis, within the block period or the EO period as applicable. 5.19 Automatic EO extension in the event of ban on export product Whenever a ban/restriction is imposed on export of any product, export obligation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e found defective or unfit for use, may be re-exported to foreign supplier within three years from the date of clearance by Customs of such goods, with permission of RA/Customs Authority. Consequently, EO would be re-fixed. (b) Capital Goods imported and found defective or otherwise unfit for use may be exported, within two years from the date of clearance by Customs of such goods, with permission of RA / Customs Authority and Capital Goods in replacement thereof be imported under EPCG scheme. In such cases, while allowing export, the Customs shall credit the duty benefit availed which can be debited again at the time of import of such replaced Capital Goods. (c) Capital Goods imported under EPCG scheme, may be re-exported for repairs abroad within three years from the date of clearance by Customs of such goods, with permission of RA / Customs Authority. The duty component on the expenditure incurred on the repairs as well as the insurance and the freight, both ways shall be taken into account for re-fixation of the EO. 5.24 Penal Action In case of failure to fulfil export obligation or any other condition of authorisation, authorisation holder shall be liable for action under FT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E-2017). 5.26 Green Technology Products The Export Products covered under Paragraph 5.10 of FTP which provides for reduced export obligation of 75% for green technology products are : (i) Solar Energy Generating Systems and parts/Equipments thereof, (ii) Wind Energy Generating Systems and parts/equipment thereof, (iii) LED lights of various kind, (iv) Vapour Absorption Chillers, (v) Waste Heat Boiler, (vi) Waste Heat Recovery Units, (vii) Unfired Heat Recovery Steam Generators, (viii) Water Treatment Plants, (ix) Battery Electric Vehicles (BEV) [other than Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicle (PHEV)] of all types, (x) Vertical Farming equipment, (xi) Wastewater Treatment and Recycling, (xii) Rainwater harvesting system and rainwater filters, and (xiii) Green Hydrogen. **************** NOTES:- 1. Substituted vide Public Notice No. 15/2024-25 dated 25-07-2024 before it was read as, (a) Authorisation holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore it was read as, (b) In case of extension of Export obligation period beyond 6 years, two extensions, from date of expiry, of one year each may be considered by RA concerned, on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled export obligation for each year of extension. However, minimum composition fee shall be Rs.10,000/-. 6. Inserted vide Public Notice No. 15/2024-25 dated 25-07-2024 7. Substituted vide Public Notice No. 24/2024-25 dated 20-09-2024 before it was read as, 5.14 Annual reporting of EO fulfilment Authorisation holder shall submit to RA concerned by 30th June of every year, a report on fulfilment of export obligation through online. Such report shall contain a statement with details such as Shipping bill/GST invoice number, date of export/supply, description of product exported/supplied/service rendered and FOB/FOR value of export/supply for both specific as well as average export obligation. Any delay in filing such annual report shall be regularised on payment of a late fee of Rs. 5000/- per year for each authorisation. - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
