Epcg licence

This query is : Resolved

CA Prasanta (Querist)
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27 June 2013 Dear Member,

Under EPCG license we will be able to save the basic custom duty or Basic custom duty+CVD+additional duty.

please clarify.

regards,
Prasanta.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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28 June 2013 REFER TO PARA 5.1(C) DGFT NOTIFICATION No. 01(RE-2013)/ 2009-2014 DTD 18.04.2013

In case countervailing duty (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.

please read following and then ask any query sir..

Illustration:

- Let the value of the capital goods is Rs. 5,00,000.
- Therefore the customs duty payable without EPCG is Rs. 1,29,862 [@ BCD = 7.5% + CVD =16% + Edu Cess and SHE Cess on CVD = 3% + ACD = 4% + Edu Cess and SHE Cess on overall duty = 3%]
- Therefore the customs duty payable with EPCG is Rs. 15,000 [@ 3%].
- Therefore the amount of duty saved is Rs. 1,14,862 [Rs. 1,29,862 - Rs. 15,000].
- Therefore the value of goods to be exported is Rs. 9,18,899 [Rs. 1,14,862 X 8].

NOTED NO duty admissible in case of IMPORT THROUGH EPCG