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

EPCG import compliance: agency confirmation and equipment-description nexus can support issuance of installation certificate by customs.
The core issue is whether EPCG authorization is affected when the manufacturer's name on imported machinery differs from the supplier named in documents. The operative position is that the authority must verify nexus between the capital goods described in the EPCG authorization and the goods imported; supplier name alone does not defeat compliance if description, model and make match. Submission of a letter confirming agency/representation and matching technical particulars should enable issuance of the installation certificate.