secend hand capital goods import

[GANESH IYER]

can we have the clarification on the residul life of the secend hand machinary import..under duty paymnet or EPCG..

is there any mininmum shelf life requirement ??

Ganesh

[YAGAY andSUN]

Under para 5.2(g) of the FTP 2009-2014, Second Hand capital goods, without any restriction on age, may also be imported under EPCG Scheme.

[GANESH IYER]

sir,

thanks !!

the age restriction is not there but what is in quistion is the shelf life of the machine is there or not...

[YAGAY andSUN]

Should be alleast around 10 years.

[GANESH IYER]

thanks !! this is mentioned in policy or handbook?? any customs circular or instructions??

[YAGAY andSUN]

It is nowhere mentioned but derived from old policies.

[YAGAY andSUN]

For your kind information:-

Restriction on used capital goods import:- The Government will soon impose restrictions on import of used capital goods to protect domestic manufacturers and increase their competitiveness, a top official said on 08-08-2012.

Source:- Business Standard, New Delhi, dated 09-8-2012.

 

AI Summary

Import of second-hand capital goods permitted under EPCG despite no age restriction, practice suggests usable shelf life guidance. FTP 2009-2014 (para 5.2(g)) permits import of second-hand capital goods under the EPCG Scheme without an explicit age restriction; however, practice treats remaining usable life (commonly about ten years) as a de facto condition, a position not found in current policy text or customs circulars and derived from older policies, while media reports indicate possible forthcoming formal restrictions.