TMI BlogExempts certain goods under Export Promotion Capital Goods (EPCG) SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... are covered by a valid licence or valid authorization issued under the Export Promotion Capital Goods (hereinafter referred to as EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP) designated by the Director General Of Foreign Trade (hereinafter referred to as DGFT) or Department of Commerce(hereinafter referred to as DOC) in Towns Of Export Excellence (hereinafter referred to as TEE)in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at the rate of three percent duty and the said licence or authorization is produced for debit by the proper officer of customs at the time of clearance : Provided that for import of spare parts specified at Sr.No.4 of the Table annexed, the validity period of the licence or authorization shall be deemed to be the period permitted for fulfilment of the export obligation in full. (2) that the authorization issued under the scheme shall have the details of the users of the said capital goods and the quantum of the Export Obligation(hereinafter referred to as EO) which each user would fulfil. (3) that the goods imported shall not be disposed of or transferred by sale or lease or any other manner ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit for its revival, the export obligation may be fulfilled within the time period allowed as per the rehabilitation package or twelve years whichever is lower: Provided also that where the capital goods are imported by agro units and units in tiny and cottage sector, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported as may be specified on the licence, or for such higher sum as may be fixed by the licensing authority, and the export obligation shall be discharged within a period of twelve years from the date of issue of the licence or authorization : Provided also that where the capital goods are imported for technological up gradation as per conditions specified in Para 5.10 of the Foreign Trade Policyor by small scale industry units as defined in paragraph 5.1 of the Foreign Trade Policy, as the case may be, the export obligation shall be fixed equivalent to six times the duty saved on the goods impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods imported, assembled or manufactured are installed in the Common Service Provider's factory or premises and 4 [a certificate from the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, having jurisdiction over the Authorization Holder s factory or premises is produced confirming installation and use of capital goods in Authorization Holder s factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs referred to in condition (4) above may allow: ] Provided that in case of import of spares, the installation certificate shall be produced within three years from the date of import :- Provided further that if the Authorization Holderis not registered with central excise or if he is a service provider, as the case may be, he may produce the said certificate of installation and usage issued by an independent Chartered Engineer : Provided also that agro units located in Agri Export Zones or service providers in Agri export Zones may move the capital goods within the Agri Export Zones under intimation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l period of fulfilment of Export Obligation up to a period of two years or regularization of shortfall in Export Obligation, not exceeding five percent of such export obligation, the said block-wise period or overall period of Export Obligation shall be extended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be : Provided that in respect of sick units referred to in the second proviso to condition (4) extension of overall period of Export Obligation shall not be allowed; Provided further that the Regional Authority may grant further extension in the overall period of Export Obligation up to a further period of two years if the authorization holder pays 50% of duty payable in proportionate to the unfulfilled portion of Export Obligation to the Customs Authority and agrees to fulfil other conditions as may be specified by the Regional Authority for this purpose; Provided further that the Export Obligation period shall not be extended beyond 12 years including the original Export Obligation period of 8 years / 12 years as the case may be. 3. Where the goods specified in the said Table are found defective or u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed shall be over and above the average exports achieved by the importer or his group company or managed hotel in preceding three years for both the original and the substitute product(s) / service(s) : Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, aqua-culture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture, the importer shall not be required to maintain the average level of exports : Provided also that the goods, excepting tools, imported under this notification by the aforesaid sectors, shall not be allowed to be transferred for a period of five years from the date of imports even in cases where export obligation has been fulfilled. Transfer of capital goods would, however, be permitted within the group companies, after fulfilment of export obligation but before five years from the date of imports, under intimation to Regional Authority and jurisdictional Central Excise Authority: Provided also that exports made to former USSR, or to such countries as notified by Director General of Foreign Trade as on 31.3.08, shall not be counted for fixing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange; (c) Royalty payments received in freely convertible currency and foreign exchange received for Research and Development (R D) services; and (d) Payments received in rupee terms for port handling services in terms of Chapter 9 of the Foreign Trade Policy. (3) Foreign Trade Policy means the Foreign Trade Policy 2004-2009 published vide notification of the Government of India in the Ministry of Commerce and Industry, No. 1/2008 dated the 11 th April, 2008 as amended from time to time; (4) Licensing Authority or Regional Authority means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a licence or authorization under the said Act; (5) Manufacture has the same meaning as defined in clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944). (6) Towns of Export Excellence(TEE) means a selected town producing goods of ₹ 1000 Crores or more based on potential for growth in exports. However for TEE in Handloom, Handicraft, Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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