CAPITAL GOODS IMPORT EPCG

[DEEPAK SHARMA]

We imported Capital goodds without payment of Customs duty, Excise Duty and Addl Duty, there was 40 lakhs all duties was involved, what is cretaria to export the goods manufactured by that Capital goods.

we have allready exported the goods mfgd by that machine. on which condition we can sale the same machinary or able to give the same machine on rent. please clerify

[Mukund Thakkar]

Mr. Deepak,

please  refer  HBP chap 5 which is  self explantory..

[BHARAT PUROHIT]

D/ SIRS

IF U NHV EXPORTED THE GOODS MFGD BY THE M/C FULFILLS EXPORT . CONDITION :  export AFTER THE DT OF ITS INSTALLATION .

B.B.PUROHIT, CONSULTANT, IMPORT- EXPORT,

ID: bbp1957 at the rate of outlook.com

[YAGAY andSUN]

You would have to mention the EPCG license number on the Shipping Bills.  Further, you cannot remove the capital goods unless untill you fulfill the export obligation as mentioned in your EPCG License.  In the event of non compliance you would have to pay the hefty penalty, Interest, and diffential duty.  Further, Customs Department, and DGFT may take penal actions and you may fall under Denied Entity List (i.e. DEL).

[Mahir S]

Though you have fulfilled the export obligation, necessary endorsement on the Licence is necessary from the DGFT.

Also the sale/rent of machinery can be done after completion of the relevant Period (5/8/6 years), applicable as per the condition of the export obligation to be fulfilled.

You may also approach the Jurisdictional Excise Range Office for necessary guidance in the matter.

AI Summary

Export obligation under EPCG restricts sale or removal of imported capital goods until obligation fulfilled and endorsement obtained. Importation under the EPCG scheme is subject to a binding export obligation; the EPCG licence number must be quoted on shipping bills and DGFT endorsement is required upon fulfillment. Capital goods cannot be removed, sold, or rented until the prescribed export obligation period is met; failure to comply attracts duty, interest, penalties and possible administrative sanctions including placement on a denied entity list. Refer HBP Chapter 5 and the jurisdictional excise/customs office for procedural guidance.