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

Import of second-hand capital goods now regulated by FTP; currently permitted only after Exim Facilitation Committee approval.
Import of second-hand capital goods under the EPCG scheme depends on FTP period-specific provisions: Para 5.01(f) initially prohibited such imports (FTP 2015-20 initial period), the prohibition was later deleted in a revision, and under FTP 2023 imports of otherwise restricted items under EPCG are permitted only after approval from the Exim Facilitation Committee. Appendix 5F (Sl. No. 11) is also cited as restricting second-hand capital goods; relevant case law may favour importers for particular periods, so the applicable FTP period must be determined.