Machinery under EPCG

[kiran pai]

Dear all,

We are the manufacturer of Textile fabric at Tarapur, we have under taken lease of machineries from XYZ.  XYZ has imported that machineries under EPCG.  After installation of these machineries at our unit we had taken installation certificate from the Dept.  Now we want to shift that machineries to our other unit at other State.  Can any one please inform me the procedure regarding this matter.

Kiran Pai

[ALOK GUPTA]

It is not clear whether you have fulfilled the export obligation in respect of which the capital goods were imported under EPCG Scheme. Please inform.

[YAGAY and SUN]

As per the para 5.4 of the  FTP :-

Import of capital goods shall be subject to Actual User condition till export obligation is completed.

 

[kamal chordia]

please confirm that what is date Licence,and date of Import and also confirm whether EO Is completed or not.

 

AI Summary

Actual User condition: EPCG-imported capital goods cannot be moved between units until export obligation is confirmed completed.
Relocation of capital goods imported under the EPCG scheme depends on whether the export obligation has been discharged; until EO completion the goods remain subject to the Actual User condition. Key documents to confirm are the licence date, import date, installation certificate and EO status; if EO is incomplete, EPCG and FTP formalities will govern any inter State shift.