EPCG Scheme – in Exim Policy 1992-97
Ntfn 160 The Central Government exempts
20.04.92 capital goods, when
imported in to
India by an importer
specified in column (2) of the Table hereto annexed from so much of the duty of
customs leviable hereon 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 specified in the corresponding entry in column (3) of the said Table and
the whole of the additional duty leviable thereon under section 3 of the said
Customs Tariff Act, subject to the following conditions, namely:-
(i)
the capital goods imported are covered by a valid licence issued on or before
30th April, 1995 under the Export Promotion Capital Goods (EPCG) Scheme in
terms of the Export and Import Policy (hereinafter referred to as the Policy)
and the said licence is produced for debit at the time of clearance;
[Substituted by 306/28.12.92]
(ii)
the importer, at the time of clearance, shall produce to the Assistant
Commissioner of Customs a certificate from the licensing authority for having
executed a bond under paragraph 45 of the Policy; and
(iii)
the importer at the time of clearance of the said capital goods shall make a
declaration before the Assistant Commissioner of Customs, in such form as he
may specify, binding himself to pay on demand an amount equal to the duty
leviable on such capital goods but for the exemption contained herein in
respect of which the conditions specified in column (2) of the Table have not
been complied with.
(iv)
Where the licensing authority grants an extension of the period for fulfilment of
export obligation or regularisation of shortfall in export obligation not
exceeding 5% of such export obligation, in terms of, and subject to
satisfaction of such conditions as may be specified in a Public Notice of the
Government of India in the Ministry of Commerce in this regard, the said period
of fulfilment of export obligation may be extended, but shall in no case be
extended beyond the 31st March, 2002, and the said short fall in export
obligation condoned by the Assistant Commissioner of Customs or the Deputy
Commissioner of Customs, as the case may be. [Inserted by 8th Sch. of FB,
2001]
(v) where the Licensing Authority, in
respect of a licence-holder unit affected by the earthquake which took place in
the State of Gujarat in the month of January, 2001, grants extension of the
period for fulfilment of export obligation, in terms of, and subject to the
satisfaction of such condition as may be specified in a Public Notice of the
Government of India in the Ministry of Commerce and Industry in this regard,
the said period of fulfilment of export obligation may be extended and be
deemed to have been extended beyond the 31st day of March, 2002, but shall in no
case be extended beyond the 31st day of March, 2004. [Inserted by Second
Schedule Finance Bill 2003]
|
Table |
||
|
SNo. |
Description of importer |
Rate of duty |
|
(1) |
(2) |
(3) |
|
1. |
Importer
undertaking an export obligation equivalent to three times the CIF value of the
said capital goods over a period of four years under paragraph 38 of the
Policy |
25% |
|
2. |
Importer
undertaking an export obligation equivalent to four times the CIF value of
the aforesaid capital goods over a period of five years under paragraph 38 of
the Policy |
15% |
“Explanation. - In this
notification, -
(i)
“capital goods” means any plant, machinery, equipment or accessories required
by an importer for -
(a)
manufacture or production of goods and includes packaging machinery and
equipment, refractories, refrigeration equipments, power generating sets,
machine tools, catalysts for initial charge required for and imported along
with capital equipments, equipments and instruments for testing, research and
development, quality and pollution control;
(b)
use in manufacturing, mining, agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, poultry and sericulture and includes
spare parts required for the maintenance of such capital goods not exceeding
10% of CIF value of the capital goods actually imported;
(ii)
“Export and Import Policy” means the Export and Import Policy, 1 April 1992 -
31 March 1997 published vide Public Notice of the Government of Indian in the
Ministry of Commerce, No. 1-ITC(PN)/92-97 dated the 31st March, 1992, as
amended from time to time;
(iii)
“Licensing Authority” means an authority competent to grant a licence under the
Import (Control) Order 1955, made under the Imports and Exports (Control) Act,
1947 (18 of 1947), or the Director General of Foreign Trade appointed under the
Foreign Trade (Development and Regulation) Act, 1992 (22 of 1922) or an officer
authorised by him to grant a licence under the said Act;
(iv)
“CIF Value” in relation to second hand capital goods, means CIF value of the
corresponding new capital goods as may be determined by the Licensing
Authority.” [Explanation amended by 124/20.05.93].
Notification
History: Original No/Date: 160/20.04.92
Amended
by 306/28.12.92; 124/20.05.93; 101/26.05.95; 108/05.06.95