Import of second hand (5 years old) machinery without payment of duty

[Narendra Soni]

Dear Experts,

We are to import second hand (5 years old) machinery without payment of duty, as per new FTP it is not allowed under EPCG schem, please suggest any schem/method to import without payment of duty.

Thanks N Regards

Narendra Kumar Soni

[Mahir S]

Sir,

As on date, we are not allowed to import Second Hand CG under EPCG authorizations.

Zero Duty EPCG authorizations are issued only for import of New CGs.

[Narendra Soni]

Dear Mr.Mahir,

Your reply is already mentioned in my query, please suggest any other method/scheme for importing second hand (5 years old) machinery without payment of duty.As per new FTP it is not allowed under EPCG scheme.

[S G]

Dear Narendra Ji,

As per para 6.02 of FTP; second hand CG, without age limit, may be imported duty free by EOU, STP, EHTP, STP and BTP subject to specify condition as mentioned therein.

As you mentioned in your query, import of second hand CG is not possible against EPCG.

Thanks!!

[Narendra Soni]

Dear Agarwal ji,

Agreed with you, but we are DTA unit, please suggest how can we import second hand CG without payment of duty.

[S G]

Dear Narendra Ji,

In FTP there is no other option available!!

Thanks!!

[MUKUND THAKKAR]

Dear Narendra

if you have any incentive scrip on hand utilized for payments of custom duty as per FTP 15-20 in case import 5 years old CG. no any other option you have.

[S G]

Dear Narendra Ji,

I agree with Mr. Mukund that the Duty Credit Scrips can be used for Payment of Customs Duties for import of inputs or goods, including capital goods, as per DOR notification, except items listed in Appendix 3A.

Thanks!!

AI Summary

Import of Second-Hand Capital Goods: duty-free import allowed only for specified export units; EPCG limited to new capital goods.
EPCG authorizations permit zero duty import only for new capital goods, whereas FTP allows duty free import of second hand capital goods without an age limit solely for specified export oriented schemes (EOU, STP, EHTP, BTP) under their conditions; DTA units lack an FTP route for duty free second hand imports but may use duty credit scrips to discharge customs duty, subject to appendix exclusions under the relevant notifications.