Second hand capital goods under EPCG

[Mathi Bharathi]

Dear Sir / Madam

Good morning

Shall we import second hand machinery (used) under EPCG Scheme. If no please share the notification number to understand?

[KASTURI SETHI]

Dear Querist,

In this context there has been changes. Read the relevant para of FTP period-wise which is as follows :-

Chapter No. 5 ---Para no. 5.01 (f) of Foreign Trade Policy 2015-20 (1.4.15 to 04.12.17)

(f) Second hand capital goods shall not be permitted to be imported under EPCG Scheme.

Chapter No. 5 ---Para no. 5.01 (f) of Foreign Trade Policy 2015-20 (5.12.17 to 31.3.23) (REVISED)

Para No. 5.01 (f) :: DELETED

Chapter No.5----Para No.5.01 (f) of Foreign Trade Policy, 2023 (From 1.4.23 onwards)

(f) Import of items which are restricted for import shall be permitted under EPCG Scheme only after approval from Exim Facilitation Committee (EFC) at DGFT Headquarters.

I hope you have understood.

There are case laws in favour of the importer for import of second hand goods under EPCG. Scheme. Relevant period has to be ascertained.

[Raghunandhaanan rvi]

The import of second-hand capital goods is not allowed under the EPCG scheme, as per Appendix 5F (Sl. No. 11) of the FTP.

AI Summary

Importing Second-Hand Machinery Under EPCG Scheme Requires Exim Committee Approval, Refer to Appendix 5F for Details. A query was raised about the possibility of importing second-hand machinery under the EPCG Scheme. The first response highlighted changes in the Foreign Trade Policy (FTP) regarding this matter. Initially, the import of second-hand capital goods was not permitted under the EPCG Scheme as per the 2015-20 FTP. This restriction was later deleted, and the current policy allows such imports only with approval from the Exim Facilitation Committee. The second response reiterated that the import of second-hand capital goods is generally not allowed under the EPCG scheme, referencing Appendix 5F of the FTP.