Import Duty at concessional rate on Machinery

[SHOEB VAPIWALA]

Dear Sir

The Importer have place an order to the manufacturer of Italy of the Machinery to manufacture 'Vitrified Tiles' (Say 70% of total value). Some of the additional Machinery has to Import from China (Say 30% of total value).

What are options to import duty free import of the machinery.

If the importer doesn't want to abide to export obligation under EPCG, which are other options available to the importer at the concessional rate of import duty.

Your valuable opinion at earliest will be apprciated.

Thanks

VAPIWALA S G - RAJKOT

[YAGAY and SUN]

Dear Shoeb,

You may explore the possibilities under Project Import Regulation 1986 as amended from time to time for importing the machinery at concessional rate of duty.

Please discuss this aspect with your CHA also to check the eligibility under above regulations.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[SHOEB VAPIWALA]

Dear Sir,

We are very much thankful for suggestion. But there is no such scheme at present.

We request you provide us duty rate at present with a comparison import under EPCG with ZERO duty rate with an export obligation for 6 or 8 years.

Regards.

VAPIWALA S G - RAJKOT

[YAGAY and SUN]

Dear Shoeb,

These Project Import Regulation, 1986 under Customs Laws are still valid.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[SHOEB VAPIWALA]

Dear Sir,

If It is valid, please suggest scheme, if possible under Project Import Regulation 1986.

Regards.

VAPIWALA S G - RAJKOT

[Mahir S]

You can also import machinery at concessional rate of duty under following conditions:-

(i) When imported from Specified Countries/Areas

(ii) When imported for Specific use in Industrial Production.

Notifications at concessional rate of duty already prescribed for imports referred above.

AI Summary

Concessional import duty for machinery available via project import rules, EPCG with export obligation, or country/use notifications.
Concessional import duty for capital machinery can be sought under the Project Import Regulations 1986, via the EPCG scheme which grants zero or reduced duty in return for an export obligation, or under concessional notifications applicable to imports from specified countries or for specific industrial production uses. Eligibility, procedural requirements, and the precise duty rates should be verified with a Customs House Agent and by consulting the relevant notifications.