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Debonding of capital goods from stpi unit

2923 views 1 replies

Seshu

student

38 Points Joined March 2008

Hi all

I have following issues in customs. Kindly respond ASAP.

1. Ours is the STPI unit and we have capital goods which are used for more than 5 years. We want to use some of goods for a further period. Do we need to get approval from the customs for the further period ?

2. Whether Section 61 of Customs Act will apply to capital goods which are in use of STPI(100% EOU) ?

3. We want to debond some of the capital goods after 5 years of use . Do we need to pay any customs duty ? If so how much?

4. Kindly provide debonding procedure.

Replies (1)

RAMESH KUMAR VERMA

CS PURSUING

43853 Points Joined December 2009

The period of operation for STP units would normally be 5 years. The Director, STP would permit debonding of the STP unit if it has met the export obligation and other conditions of the letter of approval.

In case the unit has not fulfilled the export obligation and other conditions of the letter of approval, the case would be forwarded to the DGFT for taking penal action for non fulfillment of the conditions of letter of approval, The units would also be required to pay the customs duties, Central Excise duties and it will also be liable for levy of liquidated damages.

link is:

/experts/debonding-of-capital-goods-procedure-326535.asp