We have imported used Machine under EPCG scheme in 'June-2006. We have fullfil the export obligation but we do not have apply for Redemption Certificate from DGFT dept due to same documentation part was not completed.
Now we are the same machine re-export to overseas supplier.Machine is good working condition.
Please let me know what is complet proceduer requirted from DGFT & Central Excise.
Please Matter is most urgent. Awaiting your feedback.
Since you have imported machine under EPCG (concessional / zero duty) if you re-export machine you will have to pay import duties applicable on machine at the time of import. You can avail duty drawback afterwards under section 74 of Customs Act 1962. You have completed export obligation but still as per my opinion you need to pay import duties if you want to re-export the machine before expiry of E.O. Period. Please read with Custom Circular No.58/99-CUS Dtd.30.08.1999 & 19/65-cus Dtd.06.02.1965. Further, you are also supposed to maintain average export performace (mentioned in EPCG Lic Application & EPCG Licece) every year untill expiry of Export Obligation (E.O.) Period. Again, machinery is in good working condition hence you can also not claim that you are re-exporting the same for replacement / repairing purpose. Above information is as per my knowledge. Kindly consider inputs from other CA Club members / your consultants also.
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