Installation Certificate

[RAMESH ANANTHAKRISHNAN]

Dear Sirs,

We have imported a machinery under EPCG (basically it was second hand machinery) during 2007. Since the machinery is second hand, we are yet to source some critical spares as a result the machine is not installed so for. As per the provisions we have to submit the installation certificate within 6 months from the date of receipt. Though we have sufficient time to complete the EO, with regard to installation certificate what do we do now. We believe the installation will take place before this year end.

Kindly advise.

[Snehal Kulkarni]

Completion of EO and taking the Installation certificate are separate issues.

Installation certificate needs to obtain within Six Month from the date of Importation. By any means if the installation is taking time, this needs to intimate to the Excise Authority with reason and after completion one has to take the Installation Certificate.

This certificate needs to kept in record and have to submit at the time of Redemption of the Lic.

AI Summary

Installation certificate: delayed installation requires informing excise authority and obtaining certificate before licence redemption.
An Installation Certificate must be obtained within six months of importation for machinery under EPCG; this obligation is separate from completion of the Export Obligation. If installation is delayed, the importer must intimate the Excise Authority with reasons and procure the certificate after installation. The certificate must be kept in records and submitted at the time of licence redemption.