TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... ulfillment 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 3% 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, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs.50 lakhs 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er EPCG Scheme after approval from EFC at Headquarters. 5.1A Spares (including refurbished/reconditioned spares), 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 eight times of duty s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of quantum of EO to be discharged by them and the B.G. will be enforced in the event of the obligation not being fulfilled.] Conditions for import of Capital Goods 5.3 Import of capital goods shall be subject to Actual User condition till export obligation is completed. Export obligation 5.4 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 ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards fulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP. Royalty payments received in freely convertible currency and foreign exchange received for R D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge. (v) Deleted. Provision for BIFR units 5.5.1 Any firm / company registered with BIFR or any firm / company acquiring a unit, which is under BIFR shall be allowed EO extension as per rehabilitation package, subject to approval of BIFR, or 12 years if not specified. Above provisions apply also to SSI units as per rehabilitation schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g for Technological Upgradation of existing capital goods imported under EPCG is 5 years from Authorisation issue-date. (ii) Minimum exports made under old capital goods must be 40% of total export obligation imposed on first EPCG Authorisation. (iii) Export obligation would be refixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorisation issue-date. (iv) Deleted. (v) Facility for technological upgradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant. (vi) Capital Goods to be imported must be n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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