Capital item in Indian currency or U$, Customs - Exim - SEZ

[Narasimha Subramanian]

One of our customers want to procure a capital item under EPCG scheme. We are importing this item from our Principals in US and selling to this customer as High Sea Sales. Can we sell to him in Indian Rupees or is it mandatory that the transaction should be in US$? Please clarify

Posts / Replies

[Surender Gupta]

There is no condition that the proceeds against High Sea sale must be paid in foreign exchange to avail the exemption under EPCG scheme. Your customer is still eligible for exemption.

[JAYASANKAR V]

You can sell the Capital goods sourced from your US based Principal, on high sea sales basis to your Customer holding EPCG Licence and you can charge / bill him in Indian Rupees for the cost of Capital goods adding your margin of Profit, which will be the basis for assessment of import duty from the EPCG Licence holder. SHRI JAYASANKAR. V. jayasankar_asso@yahoo.com