TaxTMI 
TaxTMI 
Nil Customs duty & 10% additional duty on Captial goods, components & spares imported against an EPCG Licence - EXIM Policy 1992-97
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.... which is specified in the First Shcedule to the Customs Tariff Act, 1975 (51 of 1975) and so much of the additional duty leviable thereon ^2[ under sub-sections (1), (3) and (5) of section 3 ] of the said Customs Tariff Act, as is in excess of the amount calculated at the rate of 10% of the value of goods: Provided that where the said goods are required for the manufacture of leather garments, textile garments (including knitwears), agro products and products of horticulture and floriculture and poultry such goods shall be exempt from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act. 2. The exemption contained in paragraph 1 shall be subject to the following conditions, namely:- ....
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.... 15% 3. Block of 5th and 6th year 35% 4. Block of 7th and 8th year 50% Provided that where the CIF value of licence is not less than Rs. 100 crores, the export obligation shall be fulfilled within a period of 12 years from the date of issue of licence in the following proportions, namely:- S.No. Period from the date of issue of Licence Proportion of Total Export Obligation 1 2 3 1. Block of 1st, 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 subse....
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....forthwith, the whole of the duties of customs leviable on the goods imported but for the exemption contained in this notification together with interest at the rate of 15% per annum from the date of clearance of the goods. (6) The importer shall, if he fails to import goods for a minimum value of twenty crores of rupees within the validity period of the import licence, be liable to pay forthwith the whole of the duties of customs leviable on the goods imported but for exemption contained in this notification together with interest at the rate of 24% per annum from the date of clearance of the goods. ^3[(7) The capital goods imported, assembled or manufactured are installed in the....
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....d in case of other licence having export obligation period of 12 years, extension of overall period of export obligation shall not be allowed. ^1[3. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12^th August, 2013. ] TABLE S.No. Description of goods 1 2 1. Capital goods. 2. Capital goods in SKD/CKD condition to be assembled into capital goods by the importer. 3. Components of capital goods required for assembly or manuf....
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....the use of capital goods imported, assembled or manufactured in terms of this notification or making of supplies of such products in terms of clauses (a), (c), (e), (f) and (i) of paragraph 121 of the Export and Import Policy and para 10.2 (g) of the Export and Import Policy 1997-2002 corrected up to 13th April, 1998; and (ii) export of goods in terms of the notification of the Government of India in the Ministry of Commerce and Industry (Department of Commerce) No.28 (RE-2003)/2002-2007, dt. the 28th January, 2004. (6) "Net foreign exchange" means FOB value of products exported in discharge of obligation in terms of this notification minus CIF value of inputs used in manufacture thereof where such inputs have been- ....