TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods imported in 12 years from Authorisation issue date. For SSI units, import of capital goods at 5% Customs duty shall be allowed subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods in 8 years from Authorisation issue-date and total investment in plant and machinery after such imports does not exceed SSI limit. However, in respect of EPCG Authorisations with a duty saved amount of Rs. 100 crores or more, export obligation, shall be fulfilled in 12 years. In case CVD is paid in cash on imports under EPCG, incidence of CVD would not be taken for computation of net duty saved provided the same is not Cenvate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res), tools, spare refractories and catalyst for existing plant and machinery (imported earlier, under EPCG or otherwise) shall be allowed to be imported subject to an export obligation equivalent to 8 times of duty saved to be fulfilled in 8 years reckoned from Authorisation issue date. EPCG for Projects 5.1B An EPCG Authorisation can also be issued for import of capital goods under Scheme for Project Imports notified by the Central Board of Excise and Customs under S.No 441 of Customs Exemption Notification No 21/2002 dated 01.03.2002. Export obligation for such EPCG Authorisations would be 8 times of duty saved. Duty saved would be difference between effective duty under aforesaid Customs Notification and concessional duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e(s) provided by the same firm / company or group company / managed hotel which has the EPCG authorisation. However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s)/ service(s) despite exemption in Para 5.7.6 of HBP v1. (ii) Shipments under Advance Authorisation, DFRC, DFIA, DEPB or Drawback scheme would also count for fulfillment of EPCG export obligation. (iii) Export obligation can also be fulfilled by supply of ITA-1 items to DTA provided realization is in free foreign exchange. (iv) Exports shall be physical exports. However, deemed exports as spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 8.3 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfillment of positive NFE by said EOU as provided in Para 6.9 (a) of FTP. 5.7 Deleted Fixation of Export Obligation 5.7A In case of direct imports, export obligation shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, export obligation shall be reckoned with reference to notional Customs duties saved on FOR value. 5.8 Deleted 5.9 Deleted Technological Upgradation of existing EPCG machinery 5.10 EPCG Authorisation holders can opt for Technological Upgra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --------------------------- Note : 1. Has beensubstitutedvide Notification No. 19 (RE-2007)/2004-2009 dated 30/7/2007, before it was read as, "Spares (including refurbished / reconditioned spares), tools, spare refractories and catalyst for existing plant and machinery shall be allowed to be imported subject to an export obligation equivalent to 8 times of duty saved to be fulfilled in 8 years reckoned from Authorisation issue-date." 2. Has been substituted vide Notification No. 36 (RE-2007)/2004-2009 dated 8/10/2007 before it was read as , "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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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