Duty Refund on import of capital equipments if we export goods manufactured

[CABIJENDERKUMAR BANSAL]

Dear Sir,

We are going to import some equipment’s from Outside India in Chennai Plating plant:-

1. Filter (from Japan)
2. Rectifier (from China)
3. Heat Pump (from China)

We want to know how we can take refund of duty paid on import of these equipment’s ( as we think there is rule over that if we export 6 times of the duty amount then we can get refund of that).

Pls. provide clarity over that.

[Ganeshan Kalyani]

Refer Foreign Trade Policy in this regard .

[SHARAD ANADA]

If you import capital goods under EPCG (Export Promotion Capital Goods) scheme then in that case you are not going to pay any import duty but at the same time you have to fulfill export obligation which is 6 times of duty saved by you. This export obligation is to be fulfilled in 6 year time with 50% obligation in 4 year time. Suppose you saved duty of RS. 50 lakh then your export obligation will be ₹ 3 crore i.e. 6 times of 50 lakh

There is no refund facility under custom act or GST act for purchase under EPCG

[KASTURI SETHI]

I support the views of Sh.Sharad Anada Ji.

AI Summary

EPCG scheme export obligation requires sixfold of duty saved and precludes duty refund under customs or GST. Under the Export Promotion Capital Goods (EPCG) scheme importers can obtain concessional or nil import duty in return for an export obligation equal to six times the duty saved, to be fulfilled within the scheme timeframe (six years with half due by four years); there is no duty refund available under the Customs Act or GST for EPCG-covered imports.