Sale of capital goods importe under epcg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2013 We have importe capital goods under EPCG licence (Custom not 64/2008 dtd 09th May 2008).We have fulfilled export obligation and redemption also applied and waiting for redemption letter form DGFT.

Query:
1. Can we sale these capital goods before getting redemption letter from DGFT.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 March 2013 if you had fulfilled the EO then sale it in DOMESTIC MARKET AS WELL AS EXPORT TOO.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 5.4
Conditions for import of Capital Goods
Import of capital goods shall be subject to Actual User condition till export obligation is completed.

Quey: Above para says till the export obligation is completed.

Export obligation fulfilld and redemption applied but EODC certificate not obtained will satisfy the abopve para or not.

if u can give some reference of case law it is better

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 March 2013 Refer to para 5.4 Import of capital goods shall be subject to Actual User condition till export obligation is completed.

Export obligation para 5.5
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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.