TaxTMI 
TaxTMI 
Concessional duty of 5% on Capital goods, components and spares imported under the (EPCG) Scheme EXIM Policy 2002-2007
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....oms Tariff Act, 1975 (51of 1975) as is in excess of the amount calculated at the rate of five percent ad valoram 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 above paragraph, 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 Chapter 5 of the Export and Import Policy permitting import of goods at the rate of five percent duty and the said licence is produced for debit by the proper officer of the customs at the time of clearance....
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.... of issue of licence Proportion of total export obligation 1 2 3 1. Block of 1st , 2nd, 3rd, 4th & 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 the export obligation of particular block may be set off against the excess exports made in the said preceding block(s); (3) the importer produces within 30 days from the expiry of each block from the date of issue of ....
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.... (i) manufacturer exporter and merchant exporter having supporting manufacturer (s) or vendor(s), (ii) import of irrigation equipment for use in contract farming for export of agricultural products, and (iii) importer rendering services. The capital goods may be installed at the factory or premises of such other person whose name and address are endorsed on the licence referred to in condition (i) and where the bond for full difference of duty, if necessary, in terms of conditions (2), with a bank guarantee is executed by the importer and such other person binding themselves jointly and severally to fulfil the export obligation and all other conditions of this notification and to pay duty with interest in case of default; (5) notw....
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.... product group during the year 2007-08 has declined by more than 5% as compared to the year 2006-07, average export obligation of the licencee for 2007-08 may be reduced proportionate to the reduction in exports of that particular sector or product group during 2007-08 as against 2006-07. 1[5. 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 12th August, 2013.] 4[6. In a case of default in export obligation, when the duty on goods is paid to regularise the....
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....vernment of India in the Ministry of Commerce, No.1/ 2002-2007 dated the 31st March, 2002; (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 exports, to a place outside India, of products manufactured with the use of capital goods imported, assembled or manufactured in terms of this notification: Provided that export obligation may also be fulfilled by (a) export of same products capable of being manufactured with the use of sai....