EPCG exemption

[sukhvinder singh]

Dear Sir ,

We are registered under excise as manufacture still not start the production , we want to import the Capital goods under EPCG scheme at Zero rate . Department is demanding 100% bank gurantee at the time of Clearance as we are not manufacture or not export from last three year .

Please provide the relevent notification or circullar to save the said bank gurantee

[YAGAY andSUN]

No way out.  You would have to furnish 100% Bank Gurantee.

AI Summary

Importing Capital Goods Under EPCG Scheme Requires 100% Bank Guarantee, Even Without Recent Production or Export Activity A user inquired about importing capital goods under the EPCG scheme at a zero rate, despite not having started production or exporting in the last three years. The customs department is demanding a 100% bank guarantee for clearance. The user sought relevant notifications or circulars to avoid this requirement. A respondent indicated that there is no alternative, and the 100% bank guarantee must be furnished.