TMI BlogConcessional duty of 5% on Capital goods, components of capital goods and spares imported under (EPCG) scheme - EXIM Policy 1997-2002 - CIF CriteriaX X X X Extracts X X X X X X X X Extracts X X X X ..... m so much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of 5% ad valorem and from the whole of the additional duty and special additional duty leviable thereon respectively 2 [under sub-sections (1), (3) and (5) of section 3 and section 3A] of the said Customs Tariff Act. 2. The exemption contained in paragraph 1, shall be subject to the following conditions, namely:- (1) The goods imported are covered by a valid licence issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of paragraph 6.2 of the Export and Import Policy permitting import of goods at the rate of 5% duty and the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Block of 7th and 8th year 50% Provided that where the CIF value of licence is not less than ₹ 100 crores, the export obligation shall be fulfilled within a period of 12 years from the date of issue of licence in the following proportions, namely: S.No. Period from the date of issue of licence Proportion of total export obligation 1 2 3 1. Block of Ist ,2nd, 3rd, 4th and 5th year Nil 2. Block of 6th, 7th and 8th year 15% 3. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the goods. (4) The importer shall, if he fails to discharge a minimum of 25% of the export obligation prescribed for any particular block of two years for two consecutive blocks, be liable to pay forthwith the whole of the duties of customs leviable on the goods imported but for the exemption contained in this notification together with interest at the rate of 15% per annum from the date of clearance of the goods. (5) 3 [The capital goods imported, assembled or manufactured are installed in the importer s factory or premise and a certificate from the Assistant Commissioner of Customs or Deputy Commissioner of Customs having jurisdiction over the importer s factory or premise or any independent Chartered Engineer, as the case m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extended and the said shortfall in export obligation be condoned by the Assistant Commissioner of Customs or Deputy Commissioner of Customs. Provided that in respect of licence holder units affected by the earthquake in the State of Gujarat in the month of January 2001, the Licensing Authority may grant extension in the overall period of export obligation up to one more year: Provided further that in case of a licence holder unit referred to in the first proviso, having overall export obligation period of 13 years and in case of other licence having export obligation period of 12 years, extension of overall period of export obligation shall not be allowed. 3. Where the goods are found defective or unfit for use, the said good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Spare parts not exceeding 20% of the value of goods specified at serial Nos. 1, 2 and 3 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured. Explanation - In this notification, (1) Capital Goods means any plant, machinery, equipment and accessories required for- (a) manufacture or production of other goods, including packaging machinery and equipments, refractories, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, and equipment and instruments for testing, research and development, quality and pollution control; (b) use in manufacturing, mining, agriculture, marine, aquaculture, animal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd similar products. (5) Net foreign exchange , in relation to importers other than those rendering services,means FOB value of products exported in discharge of obligation in terms of this notification minus CIF value of inputs used in manufacture thereof where such inputs have been, (a) imported by the importer directly against a licence; or (b) procured indigenously, for which the importer claims replenishment under the Duty Exemption Scheme as contained in Chapter 7 of the Export and Import Policy, and the said foreign exchange is earned in freely convertible currency. ------------------------------------------ Notes:- (As amended by Notification Nos. 49/2002 dated 24/4/2002, 113/2002 dated 16/10/2002, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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