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CUSTOM DUTY

 

 

Imports of Machineries at 5% Custom Duty under

Impex Solution
404,Navjivan Bldg, 121/127 Kazi Syed St,Masjid (W), Mumbai - 400 003,India
Tel : 2345 38 38 & 2346 38 38 Fax : 91 22 2345 3737 M : 9820034262
Web : impexsolution.com
Email : impexsolution@vsnl.net
impexsolution@yahoo.com

To : Indian Registered Exporter

Sub : Imports of Machineries at 5% Custom Duty under
Export Promotion Capital Goods Scheme(E.P.C.G. Scheme
FOB Basis EO Period : 5 times CIF Value of capital Goods in 8 Years
NFE Basis EO Period : 4 times CIF Value of Capital Goods in 8 Years


Dear Sirs,

New Capital goods can be imported including computer software systems with a licence under the Export Promotion Capital Goods (EPCG) Scheme by , Manufacturer exporters with or without supporting Manufacturer,Vendor, Merchant exporters tied to supporting manufacturer and service providers are eligible to import capital goods. The capital goods imported by the licence holder shall be installed at the factory of the licence holder or his supporting manufacturer(s)/ vendor(s).Details Required

Capital goods (CG), including jigs, fixtures, dies, moulds and spares upto 20% of
the CIF value of the capital goods may be imported at 5% Customs duty subject
to an export obligation equivalent to 5 times CIF value of capital goods on FOB
basis or 4 times the CIF value of capital goods on NFE basis to be fulfilled over a
period of 8 years reckoned from the date of issuance of licence.

 

Sr Custom Duty FOB BasisEO NFEBasis EO Period
1 5% on CIF 5 Times CIF 4 Times CIF 8 Years


EXPORT OBLIGATION
1 The export obligation shall be fulfilled by the export of goods manufactured or produced by the use of the capital goods imported under the scheme. The export obligation may also be fulfilled by the export of same goods, for which EPCG licence has been obtained, manufactured or produced in different manufacturing units of the licence holder/specified supporting manufacturer/vendor

2 The exports shall be direct exports in the name of the EPCG licence holder.
However, the export through third party(s) is also allowed provided the name of the EPCG Licence holder is also indicated on the shipping bill. If a merchant exporter is the importer, the name of the supporting manufacturer shall also be indicated on the shipping bills. At the time of export, the EPCG licence No. and date shall be endorsed on the shipping bills which are proposed to be presented towards discharge of export obligation.

3 Export proceeds shall be realised in freely convertible currency.

4 Physical as well as Specified Deemed Exports shall be taken into
consideration

5 Import of capital goods shall be subject to Actual User condition till the export obligation is completed.

6 The Export obligation shall be in addition to any other export obligation
undertaken by the importer and shall be over and above the average level of exports of the same products achieved by him in the preceding 3 years provided, however that if the exporter achieves an export of 75% of the annual value of the production of the export product , the export obligation under this scheme would be subsumed under that export.

7 Agricultural exporters and service providers shall be allowed to shift the capitalgoods, provided advance intimation is given to the concerned Assistant Commissioner of Customs and Excise. Such equipments shall not be sold or leased by the licence holder.

8 If the licence issued under the scheme has actually been utilised for import of a value in excess of or less than 10% of the CIF value of the licence, license shall be deemed to have been enhanced/ reduced by that proportion. Export obligation shall accordingly be enhanced/ reduced as per the actual utilization of the licence.

9 A person may apply for a licence under the EPCG scheme to import the capital goods in dis-assembled/ un-assembled condition to be assembled into capital goods by the importer or components of such capital goods required for assembly or manufacture of capital goods by the importer. This facility shall not be available for replacement of parts.

10 Exchange Fluctuation of 10% of cif value is being permitted automatically with
corresponding enhancement / reduction in export obligation. Accordingly, the
exporter will not have to come to DGFT for seeking such enhancement or
reduction in cif value time and again.

11 A person holding an EPCG licence may source the capital goods from a domestic manufacturer instead of importing them. In the event of a firm contract between parties for such sourcing, the domestic manufacturer may apply for EPCG licence under the scheme for the import of components required for the manufacture Of the said capital goods.
The domestic manufacturer may also replenish the components after supply of capital goods to the EPCG licence holder. The export obligation relating to the EPCG licence shall be reckoned with reference to the CIF value of the licence actually utilised. Benefits to Domestic Supplier
The domestic manufacturer supplying capital goods to EPCG licence holder shall not be entitled to claim following benefits in respect of deemed exports
A Advance Licence for intermediate supply/deemed export
B Deemed Export Drawback
C Refund of terminal excise duty


Detail Requirments

Please give following Details/Documents to enable us to process your application.

01 NAME OF COMPANY/FIRM
     
02 ADDRESS OF THE CO. / FIRM :
(REGISTERED OFFICE IN CASE
OF LIMITED COMPANIES, AND
HEAD OFFICE FOR OTHERS )
  TELEPHONE Nos. :
  FAX Nos. :
  E-MAIL ADDRESS :
     
02 -A NAME AND ADDRESS OF ALL :
THE BRANCHES/DIVISIONS/
UNITS/FACTORIES LOCATED
IN INDIA.
  TELEPHONE Nos. :
  FAX Nos. :
     
03 DATE OF ESTABLISHMENT OF :
BUSINESS/FACTORY IN INDIA (DD/MM/YY)
     
04. IEC No.
  DATE OF ISSUE : (DD/MM/YY) :
  FILE No. :
  ISSUING AUTHORITY
     
05. (1) MERCHANT EXPORTER
  (2) MANUFACTURER EXPORTER :
  (3) SERVICE PROVIDER
  (4) OTHERS (PL. SPECIFY) :
     
06 PERMANENT ACCOUNT NUMBER:
  PAN OF INCOME TAX ISSUING AUTHORITY :
  DATE OF ISSUE : (DD/MM/YY) :
     
07. NO. & DT. OF SSI REGISTRATION/:
  INDUSTRIAL LICENCE/IEM/
OTHERS (SPECIFY)
ISSUING AUTHORITY :
     
08. EH/TH/STH/SSTH CERTIFICATE No. : (FOR GOVT. RECOGNISED EXPORT HOUSE ONLY)
  DATE (DD/MM/YY) :
  VALID UPTO(DD/MM/YY) :
     
09. NATURE OF THE APPLICANT FIRM : (PLEASE SPECIFY)
(1)GOVERNMENT UNDERTAKING
(2) PUBLIC LIMITED CO.
(3)PRIVATE LIMITED COMPANY
(4)PROPRIETORSHIP
(5)PARTNERSHIP
(6) OTHERS (PLEASE SPECIFY)
     
10. DETAILS OF THE MAIN BANKER AND BANK ACCOUNT (ONLY MAIN BANKER)
  NAME AND ADDRESS OF THE BANK :
  TYPE OF ACCOUNT : CURRENT A/C
SAVINGS A/C.
  ACCOUNT No. :
     
11. RCMC No. :
  DATE OF ISSUE : (DD/MM/YY) :
  VALID UPTO : (DD/MM/YY) :
  ISSUING AUTHORITY :
     
12 DETAILS OF THE PROPRIETOR /PARTNER/DIRECTOR TO BE GIVEN IN FOLLOWING MANNER : (ADD ADDITIONAL SHEET IF REQD)
  (1) (A) NAME (MR/MRS/MISS) :
  (B) FATHER'S NAME :
  OR (B) HUSBAND'S NAME :
  (C) RESIDENTIAL ADDRESS :
  (D) RESIDENTIAL TELEPHONE :
  (E) E-MAIL ADDRESS :
       
  (2) (A) NAME (MR/MRS/MISS) :
  (B) FATHER'S NAME :
  OR (B) HUSBAND'S NAME :
  (C) RESIDENTIAL ADDRESS :
  (D) RESIDENTIAL TELEPHONE :
  (E) E-MAIL ADDRESS :
     
  (3) (A) NAME (MR/MRS/MISS) :
  (B) FATHER'S NAME :
  OR (B) HUSBAND'S NAME :
  (C) RESIDENTIAL ADDRESS :
  (D) RESIDENTIAL TELEPHONE :
  (E) E-MAIL ADDRESS :
     
  SIGNATURE OF THE :
(PROPRIETOR/PARTNER/DIRECTOR)
  NAME OF SIGNATORY :
  DESIGNATION :
  FULL RESIDENTIAL ADDRESS :
     
13 (15) Self Certified copies of :
Partnership Deed / Articles of Memorandum.
 
     
14 (15)Self Certified copies of :
Permanent Income Tax A/c. No.
Allotted by the Income Tax Department
 
     
15 30(Thirty) big size letterheads Duly signed by :
Prop/Partner/Director with Designation stamp
on right side base corner.
 
     
16 (15) Self Certified copies of :
Importer Exporter Code No
 
     
17 (15) Self Certified copies of :
Registration Cum Membership Certificate
And Third Party if any
 
     
18 (15) Self Certified copies of :
Export Order
 
     
19 (15) Self Certified copies of :
SSI Registration Certificate
 
     
20 (15) Self Certified copies of :
Central Excise Registration Certificate
 
     
21 (15) Self Certified copies of :
Mfg Process with Flow Chart
 
     
22 (15) Self Certified copies of :
Proforma Invoice Showing
 
  A FOB Value  
  B Insurance Value  
  C Freight Value  
  D CIF Value  
  E Country of Origin  
  F Country of Shipment  
     
23 (15) Self Certified copies of :
Pamphlet / Literature of Photograph of
machinery to be imported
 
     
24 Details of Past Export Performance for last 3 LicensingYear.  
1 Period 01.04.98 To 31.3.99 01.04.99 To 31.03.00 01.04.00 To 31.03.01
2 Description      
3 FOB Value      
     
25 Details of Past Production Performance for last 3 Licensing Year.  
1 Period 01.04.98 To 31.3.99 01.04.99 To 31.03.00 01.04.00 To 31.03.01
2 End Product      
3 Production Value      
     
26 DETAILS OF OUTSTANDING EXPORT OBLIGATION AGAINST EPCG LICENCES ISSUED UNDER DUTY EXEMPTION SCHEME.  
A Licence No & date
B CIF Value
C FOB Value
D Percentage of E.O.Fulfilled Quantity Wise
E Percentage of E.O.Fulfilled Value wise
F Expiry date of E.O.Period
     
27 Justification for Import of Machinery.
Sr List of Machinery Quantity Value
       
     
28 Details of Imported/Indigenous Raw Material Reqd Per Unit.
1 Period 01.04.01 To 31.03.02 01.04.02 to 31.03.03 01.04.03 To 31.03.04
2 End Product      
3 Value      
     
29 A NAME AND ADDRESS OF ALL :
Third party Exporter& BRANCHES/
DIVISIONS/UNITS/FACTORIES
LOCATED IN INDIA.
  TELEPHONE Nos. :
  FAX Nos. :
     
29 -B RCMC No. :
  DATE OF ISSUE : (DD/MM/YY) :
  VALID UPTO : (DD/MM/YY) :
  ISSUING AUTHORITY :
     
30. Capital Investment on fixed assets :  
a. Land : Rs. _______________
b. Building : Rs. _______________
Sr Description Existing Proposed
A Land & Bldg (Rs)    
B Machinery & Equipment(Rs)    
I Imported CIF Value(Rs)    
II Indigenous Value(Rs)    
  Total    
     
31 Treasury Challan Cash Rs. ___________________
     
32 In case, Machinery is SECOND HAND :
Documentary evidence showing CIF Value, if similar New Capital Goods
are to be purchased.
 
     
33A Name of the end products to be manufactured out of the Proposed Capital Goods  
     
33B Product to be exported  
     
34 Details of exports made of the same product(s) as under the obligation / service rendered during
the three preceding years
1 Period 01.04.98 To 31.3.99 01.04.99 To 31.03.00 01.04.00 To 31.03.01
2 Prod Exported      
3 FOB Value      
     
35 Year and Country of Manufacture
     
36 Residual Life
     
37 Whether the items are reserved for SSI category? :
If yes, then furnished the following details .
 
a. Sr. No. under which it is reserved.
b Investment in Plant & Machinery
c. If the investment is more than 75 Lacs, whether industrial licence has been obtained?
     
38. Service Charge on CIF Value of Licenses. :
     
39 Cheque Favouring Bigis Impex Consultancy : Rs 10000/-

If you have any queries, please feel free to call or fax us.

Thanking You,
Yours faithfully,
Bigis Impex Consultancy,

Partner
(BHARAT PAREKH)