Export query
This query is : Resolved
11 August 2014
Can we Export any material under EPCG & Duty Draw Back at one stroke.
16 August 2014
PLZ,Help on above Query.
24 July 2024
Yes, it is possible to combine the Export Promotion Capital Goods (EPCG) scheme with Duty Drawback for exporting goods from India. Here’s a brief overview of each scheme and how they can be utilized together:
1. **EPCG Scheme**:
- The EPCG scheme allows an exporter to import capital goods (machinery, equipment, etc.) at a concessional rate of customs duty, subject to an export obligation. The objective is to facilitate the import of capital goods for enhancing export competitiveness.
- Under the EPCG scheme, exporters can fulfill their export obligations by exporting goods or services. The export obligation typically ranges from 75% to 100% of the duty saved amount within a specified period.
2. **Duty Drawback**:
- Duty Drawback is a refund of customs and excise duties paid on imported goods or materials used in the manufacture of goods exported from India. It provides exporters relief from customs and excise duties paid on inputs used in export production.
- Duty Drawback can be claimed either on All Industry Rate (AIR) or on a Brand Rate basis, depending on the specific product and its associated duties.
**Combining EPCG and Duty Drawback**:
- **Exporting Goods**: You can export goods manufactured using capital goods imported under the EPCG scheme.
- **Claiming Duty Drawback**: For the exported goods, you can claim Duty Drawback as per the applicable rates. The Duty Drawback rates are designed to neutralize the incidence of customs and excise duties suffered on the imported inputs used in the exported goods.
- **Documentation**: Ensure that you maintain proper documentation to substantiate both the export under EPCG and the claim for Duty Drawback. This includes export invoices, shipping bills, proof of payment of customs duties on imported inputs, and any other relevant documents required under the schemes.
**Points to Consider**:
- **Export Obligation**: Under the EPCG scheme, ensure that you fulfill the export obligation within the prescribed period to avoid penalties or additional duty liabilities.
- **Customs Procedures**: Comply with customs procedures for both import (under EPCG) and export (shipping, documentation, etc.) to facilitate smooth transactions and claim processes.
- **Consultation**: It’s advisable to consult with a customs or export consultant to ensure compliance with both schemes and optimize benefits.
In conclusion, exporting materials under both EPCG and claiming Duty Drawback can be beneficial for exporters looking to leverage duty exemptions on imports and refunds on export-related duties. Proper planning and compliance with regulations are essential to maximize benefits under both schemes.
1. **EPCG Scheme**:
- The EPCG scheme allows an exporter to import capital goods (machinery, equipment, etc.) at a concessional rate of customs duty, subject to an export obligation. The objective is to facilitate the import of capital goods for enhancing export competitiveness.
- Under the EPCG scheme, exporters can fulfill their export obligations by exporting goods or services. The export obligation typically ranges from 75% to 100% of the duty saved amount within a specified period.
2. **Duty Drawback**:
- Duty Drawback is a refund of customs and excise duties paid on imported goods or materials used in the manufacture of goods exported from India. It provides exporters relief from customs and excise duties paid on inputs used in export production.
- Duty Drawback can be claimed either on All Industry Rate (AIR) or on a Brand Rate basis, depending on the specific product and its associated duties.
**Combining EPCG and Duty Drawback**:
- **Exporting Goods**: You can export goods manufactured using capital goods imported under the EPCG scheme.
- **Claiming Duty Drawback**: For the exported goods, you can claim Duty Drawback as per the applicable rates. The Duty Drawback rates are designed to neutralize the incidence of customs and excise duties suffered on the imported inputs used in the exported goods.
- **Documentation**: Ensure that you maintain proper documentation to substantiate both the export under EPCG and the claim for Duty Drawback. This includes export invoices, shipping bills, proof of payment of customs duties on imported inputs, and any other relevant documents required under the schemes.
**Points to Consider**:
- **Export Obligation**: Under the EPCG scheme, ensure that you fulfill the export obligation within the prescribed period to avoid penalties or additional duty liabilities.
- **Customs Procedures**: Comply with customs procedures for both import (under EPCG) and export (shipping, documentation, etc.) to facilitate smooth transactions and claim processes.
- **Consultation**: It’s advisable to consult with a customs or export consultant to ensure compliance with both schemes and optimize benefits.
In conclusion, exporting materials under both EPCG and claiming Duty Drawback can be beneficial for exporters looking to leverage duty exemptions on imports and refunds on export-related duties. Proper planning and compliance with regulations are essential to maximize benefits under both schemes.
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