Imported Goods Covered by a Valid Licence under the Export
Promotion Capital Goods (EPCG) Scheme Permitting Import of Goods Free of Duty
Notification No. 111 dated 5th
June 1995 (As
amended by notification nos. 145/95,154/95, 32/96, 96/96, 70/97, 88/97, 56/99,
Notification No. 49 dated 24th April 2002, Notification
No. 113 dated 16th October 2002, notification No. 116 dated 28th
October 2002)
In
exercise of the powers conferred by sub-section 25 of the Customs Act, 1962 (52
of 1962), the Central Government, being satisfied that it is necessary in the
public interest so to so, hereby exempts goods specified in
the Table annexed hereto from whole of the duty of customs leviable thereon
which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of
1975) and so much of the additional duty leviable thereon under section 3 of
the said Customs Tariff Act, as is in excess of the amount calculated at the
rate of 10% of the value of goods;
Provided that
where the said goods are required for the manufacture of leather garments,
textile garments (including knitwears) agro products and products of
horticulture and floriculture and poultry such goods shall be exempt from the
whole of the additional duty leviable thereon under section 3 of the said
Customs Tariff Act.
The
exemption contained in paragraph 1 shall be subject to the following
conditions, namely: -
(1)������ The
goods imported are covered by a valid licence under the Export Promotion
Capital goods (E.P.C.G.) Scheme in terms of Export and Import policy
(hereinafter referred to as the said Policy) permitting import of goods free of
duty and the said licence is produced for debit by the proper officer of the
customs at the time of clearance;
Provided that for the import of spare parts, the validity period of the
licence shall be deemed to be the period permitted for fulfillment of the
export obligation in full:
(2)������ Omitted
(3)������ The
importer executes a bond in such from and for such sum and with such surety or
security as may be specified by the Assistant Commissioner of Customs binding
himself to fulfill export obligation equivalent to six times the CIF value of
the goods imported on FOB basis, or four times of the CIF value on Net Foreign
Exchange basis, as specified in the licence, or for such higher sum as may be
fixed by the Licensing Authority, within a period of eight years in the
following proportions: -
|
S. No.
|
Period from the date of issue of
licence
|
Proportion of total export obligation
|
|
1.
|
2.
|
3.
|
|
1.
|
Block
of 1st and 2nd year
|
NIL
|
|
2.
|
Block
of 3rd and 4th year
|
15%
|
|
3.
|
Block
of 5th and 6th year
|
35%
|
|
4.
|
Block
of 7th and 8th year
|
50%
|
Provided
that where the CIF value of licence is not less than
Rs.100 crores, the export obligation shall be fulfilled within a period of 12
years from the date of issue of licence in the following proportions, namely: -
|
S.
No.
|
Period
from the Date of Issue of Licence
|
Proportion
of Total Export Obligation
|
|
(1)
|
(2)
|
(3)
|
|
1.
|
Block of 1st, 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 (BIRF) 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 block(s);
(4)������ Spare parts including
jigs, Fixture Dies, Moulds not exceeding 20% of the value 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)������ The
importer, shall, if he fails to discharge a minimum of 25% of the export
obligation prescribed for any particular block of two years for two consecutive
blocks be liable to pay forthwith, the whole of the duties of customs leviable
on the goods imported but for the exemption contained in this notification
together with interest at the rate of 15% per annum from the date of clearance of
the goods.
(6)������ The
importer shall, if he fails to import goods for a minimum value of twenty
crores of rupees within the validity period of the import licence, be liable to
pay forthwith the whole of the duties of customs leviable on the goods imported
but for exemption contained in this notification together with interest at the
rate of 15% per annum from the date of clearance of the goods.
(7)������ The
capital goods imported, assembled or manufactured are installed in the
importer�s factory and a certificate from the jurisdictional Assistant
Commissioner of Central Excise is produced with in six months from the date of
completion of imports or with in such extended period as the said Assistant
Commissioner of Customs may allow.
(8)������ Notwithstanding
anything contained in conditions (4) and (5), where the Licensing Authority
grants extension of block wise period for any block (s) or overall period of
fulfilment of export obligation upto a period of two years or regularisation of
shortfall in export obligation not exceeding 5 per cent of such export
obligation, the said block wise period or overall period of export obligation
may be extended and the said shortfall in export obligation be condoned by the
Assistant Commissioner of Customs or Deputy Commissioner of Customs;"
Provided
that in respect of licence having overall export obligation
period of 12 years, the extension of overall period of export obligation
shall not be allowed.
Table
|
S. No.
|
Description of goods
|
|
(1)
|
(2)
|
|
1.
|
Capital goods
|
|
2.
|
Capital
goods in SKD/ CKD condition 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 not exceeding 20% of the value 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
|
Explanation: In this notification, -
(1)������ �Capital goods� means any plant, machinery, equipment and
accessories required for �
(a) manufacture or
production of other goods, including packaging machinery and equipments,
refractories, refrigeration equipment, power generating sets, machine tools catalysts
for initial charge, and equipments and instruments for testing, research and
development quality and pollution control
(b) use in manufacturing,
mining agriculture, aquaculture, animal husbandry, floriculture, horticulture,
pisciculture, poultry and sericulture;
(2)������ �Export and Import Policy� means the Export and Import Policy1
April, 1992-31 March, 1997 (Revised edition: March 1995) published vide
notification of the Government of India in the Ministry of Commerce, No.1
(RE.95)/92-97 dated the 31st March, 1995;
(3)������ �Licensing Authority� means the Director General, 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)������ Omitted
(5)������ �Export Obligation� 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 Clause (a), (c), (e), (f) and (i) of para 121of the Export
and Import Policy and Para 10.2 (g) of the Export and Import Policy 1997-2002
corrected upto 13thApril, 1998.�
(6)������ �Net foreign exchange� means FOB value of products exported in
discharge of obligation in terms of this notification minus CIF value of inputs
used in manufacture thereof where such inputs have been-
(a) imported by the
importer directly;
(b) imported by another
person and supplied to importer without undergoing any process of manufacture;
(c) procured indigenously,
for which the importer claims replenishment under the Duty Exemption Scheme as
contained in chapter VI of the Export and Import Policy.