EPCG benefits on In-house manufacture Capital Items

[BRIJMOHAN GOYAL]

A Heavy Electricals manufacturing company "A " is under expansion under Capacity Augmentation and Some equipment to be manufacture inside the factory as Capital items for their test labs. For this purpose, some of Raw material & Components to be Import from overseas vendors and some of them from Indigenous source with CIF content . The Capital Equipment, in house manufacture , will be used for testing of Transformers for Export orders and Deemed Export orders. My query as:-

(1) In-House Capital item can be covered under EPCG scheme.

(2) Benefits on Raw material & Components is available under EPCG licence.

(3) For Export obligation, Value of Imports or cost of equipment , which will be considered.

Regards,

BM Goyal

from manufacture Transformer in their plant with import of Raw material & Components for their Test Lab .

[YAGAY and SUN]

Inputs/rawmaterial which are being sourced from another country could be imported against AA without payment of duties etc.

AI Summary

EPCG scheme allows import of raw materials against authorization with duty exemption for in house capital equipment used in export testing.
Manufacturer queried EPCG coverage for in house capital goods used in testing exported transformers, eligibility of imported and indigenous inputs under EPCG, and whether export obligation should be measured by value of imports or cost of equipment. The reply states imported inputs/raw materials may be brought in against authorization without payment of duties, without further detail on export obligation calculation or indigenous input treatment.