Imported machinery procured in eou but installed at vendor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 We have to import machinery and will be used at Vendors place for subcontracting. All the payment to vendors will be made by us.

Any provision to save the duty.?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 September 2013 The import shall be subject to the following conditions:
(i) The goods shall be imported into the EOU/EPZ/EHTP/STP premises. However, agriculture and allied sectors and granite sector units in EOU/EPZ may supply/ transfer the capital goods and the inputs in the farms/fields/quarries with prior intimation to the jurisdictional Customs/ Central Excise authorities, provided the ownership of the goods rests with EOU/EPZ units.
(ii) The normal procedure as prescribed under Customs/Excise rules for EOUs and units in EPZs/EHTP/STP will be followed and appropriate bond executed with Customs/ Excise authorities.
(iii) The goods, except capital goods and spares, shall be utilised by EOU as per Policy within a period of two years or as may be extended by Customs authorities.
(iv) Goods already imported/shipped/arrived before the issue of LOP/ LOI are also eligible for duty free clearance under the EOU/EPZ/EHTP/STP scheme provided customs duty has not been paid and the goods have not been cleared from Customs.
(v) EOU/EPZ units may import plain/studded gold/platinum or silver jewellery for export after repairs/remaking.
(vi) EOU/EPZ units may obtain gold/ silver/ platinum from the nominated agencies on loan basis subject to the condition that the gold/silver/platinum jewellery shall be exported within the specified period from the date of release. This shall not, however, apply to outright purchase of precious metals from nominated agencies or if the same is obtained on loan other than from the nominated agencies.

NOTED:
you have not describe here that import u import this machine under EPCG licence..& where you installed this machine please post proper information here.

Regards,

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Hi.

We have EOU unit in Pune . This machine will be installed at subcontractor's premises which is not EOU unit. The subcontract the material and send to us for further producion.
As it is not installed in our EOU area, it is told that we have to pay duty and send that machine to subcontractor.

is it any ulternative to save this duty.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 September 2013 ONLY EOU/EPZ/EHTP units may be permitted to remove moulds, jigs,tools, fixtures,tackles, instruments, hangers and patterns & drawings to the premises of sub contractors subject to the condition that these shall be brought back to the bonded premises of EOU/EPZ/EHTP unit on completion of the job work within a stipulated period.

http://www.taxindiaonline.com/RC2/exim_policy/exim2002/eximprocedures/expro6.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Thanks for your valuable feedback.