EPCG -- MACHINERY TRANSFER

[Guest]

R/sir, We have Machinery purchase aginst EPCG & Same transfer to our sister concern unit . It is valid or not ? PLease guide . Regards, SNEHAL SHAH

[Snehal Kulkarni]

Yes, 

You need to apply for permission to DGFT for change of location /installation of Machines with case for shifting. Location is usually stated in EPCG, so this will be an amendment request. This will be on Delivery Challan from one factory to other,  Ensure that you take new installation certificate after you are permitted to shift machine by DGFT. Installation certificate is to be obtained from respective superitendent of excise and submitte to DGFT.
it is assumed that company is same, only you have 2 different units. Of couse, its also permitted for Group concerns

AI Summary

Transferring Machinery Under EPCG Scheme Allowed with DGFT Approval and Proper Documentation for Sister Concerns A query was raised about the validity of transferring machinery purchased under the Export Promotion Capital Goods (EPCG) scheme to a sister concern unit. The response indicated that it is permissible, provided permission is obtained from the Directorate General of Foreign Trade (DGFT) for changing the location or installation of the machinery. This requires an amendment request, a delivery challan between the factories, and a new installation certificate from the excise superintendent, which must be submitted to the DGFT. The process is applicable if the company is the same, even for group concerns with different units.