Epcg licence
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 July 2012
Plz provide me a checklist of EPCG (total procedure from issuance to redemption) ..so that i can perform the task assigned to me satisfactorily...
23 July 2012
checklist for issuance or Redemption? clarify ..
10 August 2012
Zero duty EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at zero Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date.
The scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmaceuticals,apparels & textiles, plastics, handicrafts, chemicals & allied products and leather & leather products; subject to exclusions as provided in HBPv1.
Validity period for import of capital goods and provision for extension in export obligation period will be as separately provided in the HBPv1. All other provisions pertaining to concessional 3 % duty EPCG scheme under this Chapter, to the extent they are not inconsistent with the above provisions of zero duty EPCG scheme, shall be applicable to the zero duty EPCG scheme also. The zero duty EPCG scheme will be in operation till 31.3.2011 .
Concessional 3% Duty EPCG Scheme 5.2 Concessional 3 % duty EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 3 % Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issuedate.
In case of agro units, and units in cottage or tiny sector,import of capital goods at 3 % Customs duty shall be allowed subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods imported, in 12 years from Authorization issue-date.
For SSI units, import of capital goods at 3 % Customs duty shall be allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods, in 8 years from Authorization issue-date, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs. 5 0 lakhs and total investment in plant and machinery after such imports does not exceed SSI limit.
However, in respect of EPCG Authorization with a duty saved amount of Rs. 1 00 crores or more, export obligation shall be fulfilled in 12 years.
In case CVD is paid in cash on imports under EPCG,incidence of CVD would not be taken for computation of net duty saved, provided the same is not CENVATed.
Capital goods shall include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dies and moulds.
Second hand capital goods, without any restriction on age, may also be imported under EPCG scheme.
However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and
companies owning/operating golf resorts, subject to the condition that:
(i) total foreign exchange earning from hotel, travel & tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1 .5 crores or more.
(ii) ‘duty saved’ amount on all EPCG Authorizations issued in a licensing year for import of motor cars,sports utility vehicles/ all purpose vehicles shall not exceed 5 0% of average foreign exchange earnings from hotel, travel & tourism and golf tourism sectors
in preceding three licensing years.
(iii) vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the Registration certificate should be submitted to concerned RA as a confirmation of import of vehicle. However, parts of motor cars, sports utility vehicles/
all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme.
Import of Restricted items of imports mentioned under ITC(HS) shall only be allowed under EPCG Scheme after approval from EFC at Headquarters.
5.2A Spares (including refurbished/reconditioned spares),moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge; for existing plant and machinery (imported earlier, under EPCG or otherwise),shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 5 0% of the normal export obligation prescribed in para 5 .1 and 5 .2 above (for import of capital goods), to be fulfilled in 8 years (6 years for zero duty EPCG scheme), reckoned
from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 1 0% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 1 0% of the book value of the plant and machinery.
EPCG for Projects 5.2B An EPCG Authorization can also be issued for import of capital goods under Scheme for project Imports notified by the Central Board of Excise and Customs under S.No.441 of Customs Exemption Notification No. 21/2002 dated 01.03.2002
Export obligation for such EPCG Authorizations would be eight times (6 times for zero duty EPCG scheme) of duty saved. Duty saved would be difference between the effective duty under aforesaid Customs Notification and concessional duty under the EPCG Scheme.
EPCG for Retail Sector 5.2C To create modern infrastructure in retail sector,concessional duty benefits under EPCG scheme shall be extended for import of capital goods required by retailers having minimum area of 1 000 sq. meters. Such retailer shall fulfill export obligation i.e. 8 times of duty saved, in 8 years.
Eligibility 5.3 EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated /certified as a Common Service Provider (CSP) by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence
subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:-
(i) EPCG licence to be given to the CSP should have a clear endorsement giving the details of the users and the quantum of Export Obligation (EO) which each user would fulfill;
(ii) Such exports will not count towards fulfillment of other specific export obligations ; and
(iii) Each one of the users of the CSP apart from the CSP should furnish 1 00% bank Guarantee (BG) equivalent to their portion of duty foregone apportioned in terms
of quantum of EO to be discharged by them and the B.G. will be enforced in the event of the obligation not being fulfilled.
Conditions for import of
Capital Goods 5.4 Import of capital goods shall be subject to Actual User condition till export obligation is completed.
Export obligation 5.5 Following conditions shall apply to the fulfillment of the export obligation:-
(i) Export Obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant.
Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any; except for categories mentioned in paragraph 5 .7.6 of HBP v1. Such average would be the arithmetic
mean of export performance in the last three years for the same and similar products provided that Premier Trading House (PTH) shall have option of fixing average level of exports based on arithmetic mean of export performance in the last five years instead of three years.
Upto 50% Export Obligation may also be fulfilled by exports of other good(s) manufactured or service(s) provided by the same firm / company, or group company / managed hotel, which has the EPCG authorization. However, EPCG authorization issued prior to 1 .4.2008 will be governed by earlier policy provisions.
However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s) / service(s), despite exemptions in Para 5.7.6 of HBP v1.
(ii) Shipments under Advance Authorization, DFRC,DFIA, DEPB or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.
(iii) Export obligation can also be fulfilled by the supply ITA-I items to DTA, provided realization is in free foreign exchange.
(iv) Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d) (f), (g) & (j) of FTP shall also be counted towards fulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge.
Provision for BIFR units 5.5.1 Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR, may be allowed EO extension, as per rehabilitation package prepared by operating agency and approved by BIFR/Rehabilitation Department of State Government, upto 12 years if not specified.
Above provisions apply also to SSI units as per rehabilitation scheme of concerned State government.
EPCG for agro units 5.5.2 LUT/Bond or 15 % BG ( as applicable) may be given for EPCG Authorization granted to units in Agri Export Zones provided EPCG Authorization is taken for export of primary agricultural product(s) notified in Appendix 8 or their value added variants.
Indigenous Sourcing of Capital Goods and
benefits to Domestic
Supplier 5.6 A person holding an EPCG Authorization may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 8.3 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfillment of positive NFE by said EOU as provided in Para 6.9 (a) of FTP.
Fixation of Export
Obligation 5.7 In case of direct imports, export obligation shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, export obligation shall be reckoned with reference to notional Customs duties saved on FOR value.
Technological
Upgradation of existing
EPCG machinery 5.8 EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization.
Conditions governing Technological Up-gradation of existing capital goods are as under:
(i) Minimum time period for applying for Technological Up-gradation of existing capital goods imported under EPCG is 5 years from Authorization issuedate.
(ii) Minimum exports made under old capital goods must be 4 0% of total export obligation imposed on first EPCG Authorization.
(iii) Export obligation would be re-fixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorization issue-date.
(iv) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 1 0% of the existing investment in plant and machinery by applicant.
(v) Capital Goods to be imported must be new and technologically superior to earlier CG.
Incentives for Fast
Track Companies
5.9 To incentivize fast track companies with a view to accelerate exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 1 00% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified , remaining export obligation shall be condoned and the Authorization redeemed by RA concerned.
However no benefits under Para 5.12 of HBP v1 shall be available in such cases.
The scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmaceuticals,apparels & textiles, plastics, handicrafts, chemicals & allied products and leather & leather products; subject to exclusions as provided in HBPv1.
Validity period for import of capital goods and provision for extension in export obligation period will be as separately provided in the HBPv1. All other provisions pertaining to concessional 3 % duty EPCG scheme under this Chapter, to the extent they are not inconsistent with the above provisions of zero duty EPCG scheme, shall be applicable to the zero duty EPCG scheme also. The zero duty EPCG scheme will be in operation till 31.3.2011 .
Concessional 3% Duty EPCG Scheme 5.2 Concessional 3 % duty EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 3 % Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issuedate.
In case of agro units, and units in cottage or tiny sector,import of capital goods at 3 % Customs duty shall be allowed subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods imported, in 12 years from Authorization issue-date.
For SSI units, import of capital goods at 3 % Customs duty shall be allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods, in 8 years from Authorization issue-date, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs. 5 0 lakhs and total investment in plant and machinery after such imports does not exceed SSI limit.
However, in respect of EPCG Authorization with a duty saved amount of Rs. 1 00 crores or more, export obligation shall be fulfilled in 12 years.
In case CVD is paid in cash on imports under EPCG,incidence of CVD would not be taken for computation of net duty saved, provided the same is not CENVATed.
Capital goods shall include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dies and moulds.
Second hand capital goods, without any restriction on age, may also be imported under EPCG scheme.
However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and
companies owning/operating golf resorts, subject to the condition that:
(i) total foreign exchange earning from hotel, travel & tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1 .5 crores or more.
(ii) ‘duty saved’ amount on all EPCG Authorizations issued in a licensing year for import of motor cars,sports utility vehicles/ all purpose vehicles shall not exceed 5 0% of average foreign exchange earnings from hotel, travel & tourism and golf tourism sectors
in preceding three licensing years.
(iii) vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the Registration certificate should be submitted to concerned RA as a confirmation of import of vehicle. However, parts of motor cars, sports utility vehicles/
all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme.
Import of Restricted items of imports mentioned under ITC(HS) shall only be allowed under EPCG Scheme after approval from EFC at Headquarters.
5.2A Spares (including refurbished/reconditioned spares),moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge; for existing plant and machinery (imported earlier, under EPCG or otherwise),shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 5 0% of the normal export obligation prescribed in para 5 .1 and 5 .2 above (for import of capital goods), to be fulfilled in 8 years (6 years for zero duty EPCG scheme), reckoned
from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 1 0% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 1 0% of the book value of the plant and machinery.
EPCG for Projects 5.2B An EPCG Authorization can also be issued for import of capital goods under Scheme for project Imports notified by the Central Board of Excise and Customs under S.No.441 of Customs Exemption Notification No. 21/2002 dated 01.03.2002
Export obligation for such EPCG Authorizations would be eight times (6 times for zero duty EPCG scheme) of duty saved. Duty saved would be difference between the effective duty under aforesaid Customs Notification and concessional duty under the EPCG Scheme.
EPCG for Retail Sector 5.2C To create modern infrastructure in retail sector,concessional duty benefits under EPCG scheme shall be extended for import of capital goods required by retailers having minimum area of 1 000 sq. meters. Such retailer shall fulfill export obligation i.e. 8 times of duty saved, in 8 years.
Eligibility 5.3 EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated /certified as a Common Service Provider (CSP) by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence
subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:-
(i) EPCG licence to be given to the CSP should have a clear endorsement giving the details of the users and the quantum of Export Obligation (EO) which each user would fulfill;
(ii) Such exports will not count towards fulfillment of other specific export obligations ; and
(iii) Each one of the users of the CSP apart from the CSP should furnish 1 00% bank Guarantee (BG) equivalent to their portion of duty foregone apportioned in terms
of quantum of EO to be discharged by them and the B.G. will be enforced in the event of the obligation not being fulfilled.
Conditions for import of
Capital Goods 5.4 Import of capital goods shall be subject to Actual User condition till export obligation is completed.
Export obligation 5.5 Following conditions shall apply to the fulfillment of the export obligation:-
(i) Export Obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant.
Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any; except for categories mentioned in paragraph 5 .7.6 of HBP v1. Such average would be the arithmetic
mean of export performance in the last three years for the same and similar products provided that Premier Trading House (PTH) shall have option of fixing average level of exports based on arithmetic mean of export performance in the last five years instead of three years.
Upto 50% Export Obligation may also be fulfilled by exports of other good(s) manufactured or service(s) provided by the same firm / company, or group company / managed hotel, which has the EPCG authorization. However, EPCG authorization issued prior to 1 .4.2008 will be governed by earlier policy provisions.
However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s) / service(s), despite exemptions in Para 5.7.6 of HBP v1.
(ii) Shipments under Advance Authorization, DFRC,DFIA, DEPB or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.
(iii) Export obligation can also be fulfilled by the supply ITA-I items to DTA, provided realization is in free foreign exchange.
(iv) Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d) (f), (g) & (j) of FTP shall also be counted towards fulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge.
Provision for BIFR units 5.5.1 Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR, may be allowed EO extension, as per rehabilitation package prepared by operating agency and approved by BIFR/Rehabilitation Department of State Government, upto 12 years if not specified.
Above provisions apply also to SSI units as per rehabilitation scheme of concerned State government.
EPCG for agro units 5.5.2 LUT/Bond or 15 % BG ( as applicable) may be given for EPCG Authorization granted to units in Agri Export Zones provided EPCG Authorization is taken for export of primary agricultural product(s) notified in Appendix 8 or their value added variants.
Indigenous Sourcing of Capital Goods and
benefits to Domestic
Supplier 5.6 A person holding an EPCG Authorization may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 8.3 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfillment of positive NFE by said EOU as provided in Para 6.9 (a) of FTP.
Fixation of Export
Obligation 5.7 In case of direct imports, export obligation shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, export obligation shall be reckoned with reference to notional Customs duties saved on FOR value.
Technological
Upgradation of existing
EPCG machinery 5.8 EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization.
Conditions governing Technological Up-gradation of existing capital goods are as under:
(i) Minimum time period for applying for Technological Up-gradation of existing capital goods imported under EPCG is 5 years from Authorization issuedate.
(ii) Minimum exports made under old capital goods must be 4 0% of total export obligation imposed on first EPCG Authorization.
(iii) Export obligation would be re-fixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorization issue-date.
(iv) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 1 0% of the existing investment in plant and machinery by applicant.
(v) Capital Goods to be imported must be new and technologically superior to earlier CG.
Incentives for Fast
Track Companies
5.9 To incentivize fast track companies with a view to accelerate exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 1 00% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified , remaining export obligation shall be condoned and the Authorization redeemed by RA concerned.
However no benefits under Para 5.12 of HBP v1 shall be available in such cases.
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 November 2012
Sir plz give me checklist
24 November 2012
dear anonymous,
i already post here what have you require for issuance or redemption this was impulsion this club anyway i am posting for issuance checklist:
Check List of Documents required
*********************************
Copy of IEC
Copy of RCMC
Copy of SSI/SIA/Industrieal Licence
List of Director,s / Partners
Board Resolution / POA
Letter Heads
Treasury Challan for Rs.
Copy of Appendix 1A
Contract / Proforma Invoice
List of Item Sought to be Imported
Catalogue / Literature
Justification for Import
C.A. Certificate for last three years in prescribed format
Details of outstanding licence in format
In Case of NewComers
Copy of Sales Tax Return
Copy of Electricity Bill
Copy of Telephone Bill
Copy of Passport
Copy of Income Tax Return
Copy of Central Excise Certificate
In Case of Status Holder
Copy of Export House, Trading House
checklist is for special you pls download:
http://www.kasez.com/HTML/CheckListForClaimingEpcg.pdf
i already post here what have you require for issuance or redemption this was impulsion this club anyway i am posting for issuance checklist:
Check List of Documents required
*********************************
Copy of IEC
Copy of RCMC
Copy of SSI/SIA/Industrieal Licence
List of Director,s / Partners
Board Resolution / POA
Letter Heads
Treasury Challan for Rs.
Copy of Appendix 1A
Contract / Proforma Invoice
List of Item Sought to be Imported
Catalogue / Literature
Justification for Import
C.A. Certificate for last three years in prescribed format
Details of outstanding licence in format
In Case of NewComers
Copy of Sales Tax Return
Copy of Electricity Bill
Copy of Telephone Bill
Copy of Passport
Copy of Income Tax Return
Copy of Central Excise Certificate
In Case of Status Holder
Copy of Export House, Trading House
checklist is for special you pls download:
http://www.kasez.com/HTML/CheckListForClaimingEpcg.pdf
29 October 2020
C.A. Certificate for last three years in prescribed format - please share this format and which category to be selected to download UDIN no.
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