Eepc license
This query is : Resolved
08 June 2015
What exactly does EEPC license meant for and what does it mean ?
Renewal of EEPC license means,what are the things a CA should verify and certify it ? please attach format if any
Renewal of EEPC license means,what are the things a CA should verify and certify it ? please attach format if any
09 June 2015
EPCG is a term used in India under exports and imports. EPCG means, Export Promotion Capital Goods. EPCG is one of the schemes provided by government of India to importers and exporters to promote exports.
In simple and easy language, EPCG is a scheme related to machinery, machinery parts and similar goods.
You (exporter) are a manufacturer exporter; you would like to import machineries in your factory from foreign country. the machineries you are importing are used for manufacturing of goods which are required to be exported where in you earn foreign exchange. However, you need to pay good amount at a time and you will get benefit of the imported machineries in coming years only. Apart from other financial assistance for exporters, you can get exemption of 100% import duty amount while importing such machineries. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years. EPCG is a good facility provided to exporters and importers by government on exemption of import duty amount.
how to get from DGFT
********************
The importer has to approach for EPCG license from licensing authority – Director General of Foreign Trade (DGFT). Application for EPCG with necessary supporting documents is filed with DGFT. Based on the amount of import duty exemption, the value addition is fixed up and export obligation has to be fulfilled accordingly. If you could not complete the export obligation in time specified by licensing authority, you may be permitted to get extended the export obligation period for further period of time. However, if you have already finished export obligation, you can sell the manufactured goods locally also in domestic tariff area (DTA).
An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein.
para 5.03 Policy Procedures
Nexus Certification
(a) RA concerned shall, on the basis of nexus certificate from an Independent Chartered Engineer (CEC) submitted by the applicant in Appendix 5A, issue EPCG authorisation. Reasonable wastage, if any, anticipated at the time of installation of capital goods will also be certified by the Chartered Engineer in the nexus certificate and the same would be mentioned in the condition sheet of the EPCG authorisation at the time of issue.
(b) RA shall thereafter forward a copy of the EPCG authorisation to the concerned Jurisdictional Central Excise Authority. The wastage so permitted at the time of issuance of authorisation would be allowed to be sold as scrap/waste on payment of applicable duty.
5.04 Certificate of Installation of Capital Goods
(a) Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Central Excise Authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s). The RA may extend the said period for producing the certificate by a maximum period of
145
another 12 months. Where a unit registered with Central Excise opts for independent Chartered Engineer’s certificate, the authorisation holder shall send a copy of the certificate to the jurisdictional Central Excise Authority as intimation/record.
(b) In the case of import of spares, the installation certificate shall be submitted by the Authorization holder within a period of three years from the date of import.
Para 5.05 Port of Registration
******************************
EPCG Authorisation shall be issued with a single port of registration as per paragraph 4.37 of HBP, for imports. However, exports can be made from any port specified in paragraph 4.37 of HBP.
Para 5.10 of HBP 2015-2020
**************************
Conditions for fulfilment of Export Obligation
In addition to conditions in paragraph 5.04 of FTP, the following conditions shall also be applicable for fulfilment of export obligation:
(a) Name of the supporting manufacturer as well as the exporter shall be indicated on export documents.
(b) EPCG authorisation holder may export either directly or through third party(ies).
(c) In case the Authorization Holder wants to export through a third party, export documents viz., shipping bills / Bill of exports etc. shall indicate name of both authorization holder and supporting manufacturer, if any, along with EPCG authorization number. BRC, GR declaration, export order and invoice 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.
para 5.11 Realization of Export proceeds
Export proceeds shall be realized in freely convertible currency except for deemed exports. Exports to SEZ units /Supplies to developers/ co-developers irrespective of currency of realization, would also be counted for discharge of Export Obligation. Realization in case of supplies to SEZ units shall be from foreign currency account of the SEZ unit.
5.14 Block-wise Fulfilment of EO
(a) The Authorisation holder under the EPCG 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 block 1st to 4th year --50%,Minimum export obligation to be fulfilled
Block of 5th and 6th year balance EO Minimum export obligation to be fulfilled.
(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, by secured electronic filing using digital signatures.
(c) Where EO of the first block is not fulfilled in terms of the above proportions, except in cases where the EO prescribed for first block is extended by the Regional Authority subject to payment of composition fee of 2% on duty saved amount proportionate to unfulfilled portion of EO pertaining to the block, the Authorization holder shall, within 3 months from the expiry of the block, pay duties of customs (along with applicable interest as notified by DOR) proportionate to duty saved amount on total unfulfilled EO of the first block.
PARA 5.22 Redemption
**********************
(a) Authorisation holder shall apply for redemption in ANF 5B with documents prescribed therein as a proof of EO fulfilment.
(b) On being satisfied, RA concerned shall issue a certificate of discharge of export obligation to the EPCG authorisation holder and forward a copy to Customs Authorities with whom BG/LUT has been executed. A statement giving details of the documents submitted by the authorisation holder towards evidence of EO fulfilment shall also be enclosed with the certificate.
(c) RA shall process such applications ordinarily within 30 days. Shortcomings, if any, shall be pointed out in one go. All correspondence, thereafter, shall relate to these deficiencies only. Fresh correspondence, if necessary, shall be within 15 days. Once documents are complete, EO will be discharged within 30 days of receipt of complete documents /information.
(d) Applications that remain outstanding beyond a period of 60 days after receipt of complete documents shall be reported to the EPCG Division at DGFT headquarters alongwith reasons thereof.
In simple and easy language, EPCG is a scheme related to machinery, machinery parts and similar goods.
You (exporter) are a manufacturer exporter; you would like to import machineries in your factory from foreign country. the machineries you are importing are used for manufacturing of goods which are required to be exported where in you earn foreign exchange. However, you need to pay good amount at a time and you will get benefit of the imported machineries in coming years only. Apart from other financial assistance for exporters, you can get exemption of 100% import duty amount while importing such machineries. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years. EPCG is a good facility provided to exporters and importers by government on exemption of import duty amount.
how to get from DGFT
********************
The importer has to approach for EPCG license from licensing authority – Director General of Foreign Trade (DGFT). Application for EPCG with necessary supporting documents is filed with DGFT. Based on the amount of import duty exemption, the value addition is fixed up and export obligation has to be fulfilled accordingly. If you could not complete the export obligation in time specified by licensing authority, you may be permitted to get extended the export obligation period for further period of time. However, if you have already finished export obligation, you can sell the manufactured goods locally also in domestic tariff area (DTA).
An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein.
para 5.03 Policy Procedures
Nexus Certification
(a) RA concerned shall, on the basis of nexus certificate from an Independent Chartered Engineer (CEC) submitted by the applicant in Appendix 5A, issue EPCG authorisation. Reasonable wastage, if any, anticipated at the time of installation of capital goods will also be certified by the Chartered Engineer in the nexus certificate and the same would be mentioned in the condition sheet of the EPCG authorisation at the time of issue.
(b) RA shall thereafter forward a copy of the EPCG authorisation to the concerned Jurisdictional Central Excise Authority. The wastage so permitted at the time of issuance of authorisation would be allowed to be sold as scrap/waste on payment of applicable duty.
5.04 Certificate of Installation of Capital Goods
(a) Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Central Excise Authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s). The RA may extend the said period for producing the certificate by a maximum period of
145
another 12 months. Where a unit registered with Central Excise opts for independent Chartered Engineer’s certificate, the authorisation holder shall send a copy of the certificate to the jurisdictional Central Excise Authority as intimation/record.
(b) In the case of import of spares, the installation certificate shall be submitted by the Authorization holder within a period of three years from the date of import.
Para 5.05 Port of Registration
******************************
EPCG Authorisation shall be issued with a single port of registration as per paragraph 4.37 of HBP, for imports. However, exports can be made from any port specified in paragraph 4.37 of HBP.
Para 5.10 of HBP 2015-2020
**************************
Conditions for fulfilment of Export Obligation
In addition to conditions in paragraph 5.04 of FTP, the following conditions shall also be applicable for fulfilment of export obligation:
(a) Name of the supporting manufacturer as well as the exporter shall be indicated on export documents.
(b) EPCG authorisation holder may export either directly or through third party(ies).
(c) In case the Authorization Holder wants to export through a third party, export documents viz., shipping bills / Bill of exports etc. shall indicate name of both authorization holder and supporting manufacturer, if any, along with EPCG authorization number. BRC, GR declaration, export order and invoice 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.
para 5.11 Realization of Export proceeds
Export proceeds shall be realized in freely convertible currency except for deemed exports. Exports to SEZ units /Supplies to developers/ co-developers irrespective of currency of realization, would also be counted for discharge of Export Obligation. Realization in case of supplies to SEZ units shall be from foreign currency account of the SEZ unit.
5.14 Block-wise Fulfilment of EO
(a) The Authorisation holder under the EPCG 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 block 1st to 4th year --50%,Minimum export obligation to be fulfilled
Block of 5th and 6th year balance EO Minimum export obligation to be fulfilled.
(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, by secured electronic filing using digital signatures.
(c) Where EO of the first block is not fulfilled in terms of the above proportions, except in cases where the EO prescribed for first block is extended by the Regional Authority subject to payment of composition fee of 2% on duty saved amount proportionate to unfulfilled portion of EO pertaining to the block, the Authorization holder shall, within 3 months from the expiry of the block, pay duties of customs (along with applicable interest as notified by DOR) proportionate to duty saved amount on total unfulfilled EO of the first block.
PARA 5.22 Redemption
**********************
(a) Authorisation holder shall apply for redemption in ANF 5B with documents prescribed therein as a proof of EO fulfilment.
(b) On being satisfied, RA concerned shall issue a certificate of discharge of export obligation to the EPCG authorisation holder and forward a copy to Customs Authorities with whom BG/LUT has been executed. A statement giving details of the documents submitted by the authorisation holder towards evidence of EO fulfilment shall also be enclosed with the certificate.
(c) RA shall process such applications ordinarily within 30 days. Shortcomings, if any, shall be pointed out in one go. All correspondence, thereafter, shall relate to these deficiencies only. Fresh correspondence, if necessary, shall be within 15 days. Once documents are complete, EO will be discharged within 30 days of receipt of complete documents /information.
(d) Applications that remain outstanding beyond a period of 60 days after receipt of complete documents shall be reported to the EPCG Division at DGFT headquarters alongwith reasons thereof.
09 June 2015
Excuse me Sir,
I had asked for EEPC license and not about EPCG.
I had asked for EEPC license and not about EPCG.
09 June 2015
for your information i would like to inform you that ENGINERING EXPORT PROMOTION COUNCIL PROVIDE THE RCMC TO THE EXPORTER.
NOTED THAT IT IS NOT LICENCE IT IS MEMBERSHIP.
It is renewed every year by payment of annual subscription fees.
If a member do not get renewed its membership by stipulated date, membership will be ceased and afresh membership needs to be obtained, if want to continue.
C.A certified the turnover in prescribed format.
format
**************************
on ca leter head
To,
Sub : Certificate of Total Export FOB Figure of M/s. ****************Regd office at *********************for the year 2013-2014 & for the year 2014-15 .
IEC No:
Dear Sir,
We Certified That the Total Export FOB figure of M/s.************** heaving Regd Office at ************************* for the finical year 2013-2014 & 2014-15 for the purpose of issuance the RCMC As following Details Below:-
Sr. No. Year Total Exports FOB in INR
as per Shipping
Bill Total Exports FOB
in USD as per e BRC
1 2013-14
2. 2014-15
Thanking You
Yours Faithfully
For abc company
(**********)
Proprietor
Membership No:
NOTED THAT IT IS NOT LICENCE IT IS MEMBERSHIP.
It is renewed every year by payment of annual subscription fees.
If a member do not get renewed its membership by stipulated date, membership will be ceased and afresh membership needs to be obtained, if want to continue.
C.A certified the turnover in prescribed format.
format
**************************
on ca leter head
To,
Sub : Certificate of Total Export FOB Figure of M/s. ****************Regd office at *********************for the year 2013-2014 & for the year 2014-15 .
IEC No:
Dear Sir,
We Certified That the Total Export FOB figure of M/s.************** heaving Regd Office at ************************* for the finical year 2013-2014 & 2014-15 for the purpose of issuance the RCMC As following Details Below:-
Sr. No. Year Total Exports FOB in INR
as per Shipping
Bill Total Exports FOB
in USD as per e BRC
1 2013-14
2. 2014-15
Thanking You
Yours Faithfully
For abc company
(**********)
Proprietor
Membership No:
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