Imports of Molds under EPCG - Supporting manufacturer

[Santosh Mali]

Dear Sir,

We have planned for new plant at Nashik, Maharashtra, India. We will be supply material to M & M from Nashik.

For production of Parts, Mahindra has/will be Imported/importing Molds under EPCG. Those molds will be unloaded at Nashik Plant as we are supporting Manufacturer of M&M in EPCG.

Now, due to some unavoidable issues such as building was not ready & Molding machine required for parts production may not be available till the time of production, we will not be able to unloading the molds and and start production at Nashik Unit. this will be sorted out in next 3-4 months.

We have a Plant at Chakan, Maharashtra and a out side supplier have a required tonnage machine. M&M can change supporting address as Chakan instead of Nashik.

My query : Is there is any option to unload the machines received under EPCG and sent is to supplier for production for temporary period. PLEASE GUIDE. IT IS LITTLE URGENT.

THANKS __/\__

[RAJA SWAMINATHAN]

Should make application to Customs authority as provided in Clause No 5.2 of Foregin trade Policy by the EPCG holder for change in the location.

(EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers. Name of supporting manufacturer(s) shall be endorsed on the EPCG Authorisation before installation of the capital goods in the factory /premises of the supporting manufacturer (s). In case of any change in supporting manufacturer (s) the RA shall intimate such change to jurisdictional Customs Authority of existing as well as changed supporting manufacturer(s) and the Customs at port of registration of Authorisation.)

[Kishan Barai]

Public / Private Customs Bonded Warehouses may be set up in DTA as per Chapter-IX of Customs Act, 1962, to import items in terms of Paragraph 2.36 of FTP. On receipt of goods, such warehouses shall keep these goods for one year without payment of applicable customs duties. Goods can be cleared against Bill of Entry for home consumption, on payment of custom duty and on submission of Authorisation wherever required, after an order for clearance of such goods for home consumption is issued by competent customs authorities. In case of clearance against duty free categories/concessional duty categories, exemption / concession from duty shall be allowed.

AI Summary

Change of supporting manufacturer under EPCG requires Customs notification; bonded warehouses permit temporary duty-free storage. EPCG imports of moulds require endorsement of the supporting manufacturer's name on the EPCG Authorisation before installation and the RA must notify jurisdictional Customs of any change in supporting manufacturer and the Customs at the port of registration. Alternatively, imported goods may be stored in bonded warehouses in the DTA for up to one year without duty, and later cleared for home consumption on payment of duty and submission of Authorisation, or cleared under duty free/concessional categories subject to Customs orders.