Import under EPCG licence

[Narendra Soni]

Dear Experts,

We have placed an order to import machinery to 'X', which was cleared under EPCG licence. All shipping documents like invoice/BL/Bill of entry have been prepared in the name of supplier as 'X' and it has customs cleared and installed in factory.

At the time of physical verification by central excise authority for issuing installation certificate, it is found that Name of 'Y' company was mentioned on machinery instead of 'X'. No any model number was mentioned as mentioned in shipping documents and EPCG licence.

We have taken the matter with 'X', as per him 'X' is the representative of 'Y' and selling goods manufactured by 'Y'. However this fact is not mentioned in any shipping documents.

Now the excise authority is denied to give positive installation certificate.

Kindly suggest, Is the transaction is not valid for import under EPCG licence.

AI Summary

Import Discrepancy: Machinery Supplier Mismatch Prevents Installation Certificate Under EPCG License; Resolution Suggested with Supplier Confirmation Letter. A company imported machinery under an EPCG license, with shipping documents listing 'X' as the supplier. However, during verification, the machinery was labeled with 'Y,' not 'X,' and lacked a model number. 'X' claimed to represent 'Y,' but this was not documented. The excise authority refused to issue an installation certificate due to this discrepancy. Experts advised obtaining a letter from 'X' confirming their representation of 'Y' and submitting it to the authorities, as the equipment details matched the EPCG authorization. They emphasized that the focus should be on the equipment's description, not the supplier's name.