Epcg export obligation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2014 Dear Expert,

We are Port service prodiver want to import capital goods under EPCG.

Q1. Is there any special scheme for duty exemtption for port handling equipment inside the Custom Bonded Area for seting upt new terminal for export obligation.

Q2. Is there any scheme for not fulfilling EO within specific perid to pay Duty in installmennt ? what would be basis of int and duty calculation ?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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23 January 2014 dear anonymous,

q-1
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epcg scheme can avial however you are service provider if you import the capital goods can can avail this SCHEME.

not, UNDER EPCG fulfill the EO is mandatory within 6 month the installation the imported machinery produce the installation certificate in concerned licensing authority.

relaxation
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refer to dgft public notice no.48 dtd 10.01.2014
Amendment in Para 5.3.1 of Handbook of Procedure Vol.I, 2009-2014.

"Authorization holder shall produce to the concerned RA a certificate from the Jurisdictional Central Excise Authority, confirming installation of Capital Goods at factory/premises of authorization holder or his supporting manufacturer(s)/vendor(s) within six months from date of completion of import. However, extension in time for Installation of Capital Goods upto a maximum period of 18 months from the date of completion of import may be considered by the concerned RA.”

Effect of this Public Notice:
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Power for extension in time for installation of Capital Goods is being delegated to regional authorities.

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2014 Thanks sir,

if we are unable to fulfill the EO condition within the stipulated period what are the remedy for same?.

Regards,
Prasanta.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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23 January 2014 Noted that as per Para 2.5 of Foreign trade policy to allow Extension in EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11 of HBP Vol. I.

ramesh kumar verma

consultant