TMI BlogConcessional duty of 5% on Capital goods, components and spares imported under the (EPCG) Scheme EXIM Policy 2002-2007X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule to the Customs Tariff Act, 1975 (51of 1975) as is in excess of the amount calculated at the rate of five percent ad valoram 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 above paragraph, 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 Chapter 5 of the Export and Import Policy permitting import of goods at the rate of five percent duty and the said licence is produced for debit by the proper officer of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than ₹ 100 crores, or where the license is issued to Units in the agri export zones as may be notified by the Director General of Foreign Trade in the Ministry of Commerce and Industry, 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 1st , 2nd, 3rd, 4th 5th year Nil 2. Block of 6th, 7th and 8th year 15% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearance of the goods; (4) 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 may be, is produced confirming installation and use of the capital goods in the importer s factory or premise, within six months from the date of completion of imports or within such extended period as the said Assistant Commissioner of Customs or Deputy Commissioner of Customs referred to in condition (2) above may allow] Provided that in the case of ,- (i) manufacturer exporter and merchant e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded further that in case of a license 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 goods may be re-exported back to the foreign supplier within 3 years from the date of payment of duty on the importation thereof: Provided that at the time of re-export, the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported. 4. where the total exports of a sector or product group during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Spare parts not exceeding twenty percent 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 husbandry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orters rendering services; means, receiving payments in freely convertible foreign currency for services rendered through the use of such capital goods. (iii) means, export of goods in terms of the notification of the Government of India in the Ministry of Commerce and Industry (Department of Commerce) No.28(RE-2003)/2002-2007 dt. 28th January. 2004. (iv) shall be, over and above, the average level of exports achieved by the licencee in the preceding three licencing years for same and similar products. -------------------------------------- Notes:- (As amended by Notifications) No. 113/2002-Cus, dated 16-10-2002; No. 116/2002-Cus, dated 28-10-2002; No. 44/2003-Cus, dated 21-3-2003; No. 29/2004-Cus, dated 28-1-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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