Capital Goods when imported into India by an importer under the
Export Promotion Capital Goods (EPCG) scheme
Notification No. 160 dated 20th
April 1992 (As
amended by notification nos. 306/92, 124/93, 101/95, 108/95, Finance Bill
2003-2004)
In
exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it
is necessary in the public interest so to do, hereby exempts capital goods,
when imported into India by an importer specified in column (2) of the Table
hereto annexed from 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 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.
(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.
(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.
|
S. No.
|
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%
ad valorem
|
|
2.
|
Importer
undertaking an export obligation equivalent to four times the CIF value of
the aforesaid said capital goods over a period of five years under paragraph
38 of the Policy
|
15%
ad valorem
|
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 spares 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
India 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) Orders, 1995, 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 1992) 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.�