TaxTMI 
TaxTMI 
Concessional duty of 5% on Capital goods, components of capital goods and spares imported under (EPCG) scheme - EXIM Policy 1997-2002 - CIF Criteria
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....o much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of 5% ad valorem and from the whole of the additional duty and special additional duty leviable thereon respectively ^2[under sub-sections (1), (3) and (5) of section 3 and section 3A] of the said Customs Tariff Act. 2. The exemption contained in paragraph 1, shall be subject to the following conditions, namely:- (1) The goods imported are covered by a valid licence issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of paragraph 6.2 of the Export and Import Policy permitting import of goods at the rate of 5% duty and the said ....
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.... proportions, namely: S.No. Period from the date of issue of licence Proportion of total export obligation 1 2 3 1. Block of Ist ,2nd, 3rd, 4th and 5th year Nil 2. Block of 6th, 7th and 8th year 15% 3. Block of 9th and 10th year 35% 4. Block of 11th and 12th year 50% Provided further that where a sick unit notified by the Board for Industrial and Financial Reconstruction (BIFR) is subsequently taken over by another unit for revival, the export obligation may be fulfilled within a period of 12 years from the date of issue of license: Provided also that export obligation of a particular block may be set off by the excess exports made in the said preceding blocks(s);....
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....a certificate from the Assistant Commissioner of Customs or Deputy Commissioner of Customs having jurisdiction over the importer's factory or premise or any independent Chartered Engineer, as the case may be, is produced confirming installation and use of the capital goods in the importer's factory or premise, within six months from the date of completion of imports or within such extended period as the said Assistant Commissioner of Customs or Deputy Commissioner of Customs referred to in condition (2) above may allow] Provided that in the case of,- (i) manufacturer exporter and merchant exporter having supporting manufacturer(s)/ vendor(s), (ii) import of irrigation equipment for use in contract farming for expo....
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.... period of 13 years and in case of other licence having export obligation period of 12 years, extension of overall period of export obligation shall not be allowed. 3. Where the goods are found defective or unfit for use, the said goods may be re-exported back to the foreign supplier within 3 years from the date of payment of duty on the importation thereof. Provided that at the time of re-export, the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported. 4. where the total exports of a sector or product group during the year 2007-08 has declined by more than 5% as compared to the year 2006-07, the average export obligation of the l....
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....iculture, marine, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, viticulture and sericulture; (c) rendering services; (2) "Export and Import Policy" means the Export and Import Policy 1997-2002 published vide notification of the Government of India in the Ministry of Commerce, No.1 (RE-99)/1997- 2002, dated the 31st march, 2000. (3) "Licensing Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act; (4) "export obligation", - (i) in relation to importers other than those rendering services, means ....