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udaykumar (Querist)
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26 November 2013 What is procedure to export capital goods on lease Basis? what is the Time Limit to import to these goods?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 January 2014 An EPCG authorization holder may, source capital goods from a domestic leasing company. In such cases, the Bill of Entry of imported capital goods or commercial invoice of indigenous capital goods, shall be signed jointly by EPCG authorization holder and leasing company. However, EPCG authorization holder shall alone be fully responsible for fulfilment of export obligation.

Document required for EPCG License
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Application form IN ANF5A
Performa invoice showing value (CIF) & if FOB basis then indicate freight & insurance catalogue.
Registration of certificate with service tax authorities (applicable for service provider) (separately not required if importing computer system)
Last 3 year for export performance details
request Letter on LETTER Head
Detail Justification
Copy of certificate of SSI / industrial licence.
Certified copy of ISO certificate if applicable
Capital investment on fixed assets and status of export fulfillment under previous EPCG license.

GUIDELINES FOR APPLICANTS
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1. Two copies of the application must be submitted unless otherwise mentioned.
2. Each individual page of the application has to be signed by the applicant.

3. In case CG sought to be imported is under restricted category, a copy of this application shall be sent to EFC at DGFT HQRS also. (In such cases no separate application fee shall be required to be submitted while sending the copy of the application to Hqrs. EFC). Upon clearance by EFC, EPCG Authorisation shall be issued by RA and will bear an endorsement that EFC has approved issue of EPCG Authorisation for restricted CG.

4. Application must be accompanied by documents as per details given below:

1. Bank Receipt / Demand Draft / EFT details evidencing payment of application fee in terms of Appendix 21B.
2. Self certified copy of IEM/SSI Registration Number in case of products or a self certified copy of Service Tax Registration

in case of Service Providers.

(In case of Service Providers, who are not registered with Service Tax authorities and a declaration in this regard has been
submitted as a part of the application (declaration no.10) , service tax registration is not required to be submitted. In such
cases RCMC from EPC concerned will suffice).

5. Certificate from a Chartered Engineer in the format given in Appendix 32A certifying:

a the end use/nexus of machinery sought for import under EPCG Scheme in the pre production/production/post production activity of the exported goods/services (explaining the end use of machinery in detail); and/or
b the essentiality of spare parts sought for import and its required quantity for existing machinery manufacturing the goods to be exported/ machinery sought for import; and/or
c complete usage of equipments/goods sought for import under the EPCG Scheme for supply of service to overseas customers/ service consumers of any other country in India to earn free foreign exchange/supply of service in India relating to export paid in free foreign exchange.

6. Statement of exports made/services rendered by the applicant firm during the preceding three licensing years duly certified by a Chartered Accountant / Cost and Works Accountant in the format given in ANF 5A.

a. In case of import of spares for existing plant and machinery, a list of plant/machinery imported and already installed in the factory/premises of the applicant firm/supporting manufacturer for which the spares are required, duly certified by a Chartered Engineer or jurisdictional Central Excise authority
b. In case of EPCG applications made by EOU/SEZ units, a self certified copy of the `No Objection Certificate’ from the Development Commissioner concerned showing the details of the capital goods imported/indigenously procured by the applicant firm, its value at the time of import/sourcing and the depreciated value for the purpose of assessment of duty under the Scheme is to be submitted.

7. Copy of previous EPCG Authorisation (in case application is made under EPCG Technological Upgradation Scheme).

7A. In case of imports under zero duty EPCG scheme for textile sector, the applicants would be required to submit a certificate from the office of Textile Commissioner, Government of India to the effect that the firm/company is not currently availing any benefit under the Technology Upgradation Fund Scheme (TUFS), administered by Ministry of Textiles, Government of India.
In case of import of restricted capital goods under ITC(HS) a self certified copy of the recommendation letter by the Sponsoring authority. (To be enclosed in case the same has already been obtained)