imports under EPC contracts

[RAMASWAMY KRISHNAIYER]

We are a manufacturing company udertaking an expansion project.   we execute projects under EPC scheme (ie.engineering, procurement , construction) under the scope of contractor.

The contractor will have to import goods from outside india.   we want to avail concessional customs duty of 5 percent under PIR.   We propose to tell the EPC contractor to ask foreign supplier to ship the goods to us (manufacturer), show in the invoice buyer as EPC contractor , consignee as us (manufactuer).

we intend to file B/E and clear the goods so that we can take cenvat benefit of CVD.

But EPC contractor , who has to make foreign remittance to supplier, has following issues:

1)now B/E filing is on computer system (ED1), no provision to write name of EPC contractor like manufacturer a/c EPC contractor

2)In the absence of above contractor cannot produce proof of import to RBI/dealers.

3)what value should be declared for duty payment, the value foreign supplier billed on Contractor OR actual payment manufacturer gives to the contractor.

4) any agreement required between manufacturer/contractor/foreign supplier on this.

kindly offer your suggestions so that customs clearance is smooth and contractor does not have problem for foreign payments

regards

AI Summary

Manufacturing company faces challenges importing goods at concessional duty under EPC scheme; seeks clarity on compliance and agreements. A manufacturing company involved in an expansion project under an EPC (Engineering, Procurement, Construction) scheme seeks to import goods with a concessional customs duty of 5% under PIR. The company plans to have goods invoiced to the EPC contractor but consigned to themselves to benefit from CENVAT credit. Challenges include filing the Bill of Entry (B/E) on the computer system without listing the EPC contractor, providing proof of import for foreign remittance, determining the correct duty payment value, and the necessity of agreements between the involved parties. A response inquires if these issues have been resolved.