Export of Used capital goods imported under EPCG Lic

[kamal chordia]

Dear Sir

 

We have imported capital goods under EPCG Scheme , The EO is fulfilled and licence is redeemed by DGFT.

Now we wish to export  the said used capital goods in which following clarification required.

[1] The stuffing of the Capital goods at dock stuff, is there is any excise role at our factory

[2] while installing the capital goods we have purchase localy auxalary/spares on which we had pais duty and taken cenvat credit, while exporting  what is the implication of cenvat taken

[3]Related central excise/ Custom notification under which we may export the used capital goods

[4] what additional documents required for easy clearance of the cargo at custom port.

 

Thanks & regards

 

kamal

 

 

[YAGAY and SUN]

1. Under self removal procedure and Free shipping bill there is no requirement of sealing by Central Excise personnel.
2. Since you are exporting the capital goods, and on export there is no tax, hence, no need to reverse the CENVAT credit so availed on spares etc.
3. Kindly check the the provision pertaining to  Re-Export of goods.
4. Copy of EOCD should be accompanied with the consignment.  Cross reference of  import invoice should be indicated on export invoice.

 

[SANTHANA KRISHNAN]

Is the export on reimport basis?

[kamal chordia]

no, it is imported under EPCG Scheme from x country andcurrently the capital goods not in use therefore we are exporting used capital goods to country Y.

 

[sridhar nagavarapu]

Dear Sir,

Good evening to experts,

Kindly advise can i re-export the capital goods imported(in the yr 2005)  under EPCG before completion of Export obligation, renctly we took 1 year extention from DGFT for fullfulment of obligation.

Please reply at the earliest

Thanks and regards.

[kamal chordia]

No, You  can't re- export the capital goods so import under EPCg licence during 2005. Bec'z the Licence was issued on actual user basis till the export obligation fulfillment.

However, if your export obligation is completed and DGFT issued EPDC then you can re export the same.

[YAGAY and SUN]

No you cannot remove the capital until unless you submit EODC.

AI Summary

Re-export of EPCG-imported capital goods requires discharge of export obligation and issuance of EODC/EPDC for removal.
Re-export under the EPCG scheme entails procedural and compliance constraints: removal under self removal and free shipping bill does not require Central Excise sealing; exports are not subject to excise so reversal of CENVAT credit on spares is not necessitated by export; export documentation should include EOCD/EPDC copies and import invoice cross-references; capital goods issued on actual user basis cannot be re-exported until the export obligation is discharged and the authority issues the EODC/EPDC.