TaxTMI 
TaxTMI 
Post Export EPCG Duty Credit Scrip Scheme notified
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....ional duty leviable thereon ^10[ under sub-sections (1), (3) and (5) of section 3 ] of the said Customs Tariff Act. 2. The exemption under this notification shall be subject to the following conditions, namely:- (1) That the said scrip is granted against a valid authorisation issued under para 5.23 of the Handbook of Procedures Volume 1 (hereinafter referred to as the said authorisation) by the Regional Authority to an applicant (hereinafter referred as the authorisation holder) who opted for the scheme of Post Export EPCG Duty Credit Scrip (3% EPCG variant): (2) That the said authorisation is not for import under duty exemption but for import of the goods specified in the Table 1 annexed hereto, on full payment of applicable duties in cash, where duty of customs under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) paid {hereinafter referred to as basic customs duty} is above 3 per cent. ad valorem; (3) That the said authorisation is registered at the port of import specified in the said authorisation and the goods, which are specified in the Table 1 annexed hereto, are imported within thirty six months from the date of issue of ....
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.... motor cars, sports utility vehicles or all purpose vehicles shall not be allowed to a Common Service Provider: Provided also that the import of capital goods for creation of modern infrastructure shall be extended only to such retailers who have a minimum area of 1000 square metres. (4) that the goods imported under the said authorisation are installed and put to use, after their import, in the authorisation holder's factory or premises and at the time of registration of the said scrip ^11[ a certificate, confirming such installation and use of the goods, from the Deputy Commissioner of Customs or Assistant Commissioner of Customs having jurisdiction over importer's factory or premises, as the case may be, which has been issued prior to the date of the first application filed by the authorisation holder for issuance of duty credit scrip against the said authorisation, is produced before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs at the port of registration, as the case may be: ] Provided that if the authorisation holder, including an authorisation holder who is a Common Service Provider (CSP), is not registered with the Central Excis....
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....or transferred by sale or lease or any other manner by the authorisation holder till the date of last export against which the said scrip is issued; (7) That the total export obligation to be fulfilled is equivalent to eighty five percent. (85%) of eight times the amount which is the difference between the following, namely:- (a) Sum of applicable basic customs duty, additional duty of customs, Education Cess under section 94 of the Finance (No.2) Act, 2004 (23 of 2004) paid and Secondary and Higher Education Cess under section 136 of the Finance Act, 2007 (22 of 2007) paid on the goods imported under the said authorisation; and (b) Sum of 3 per cent. of the assessable value of the said goods and an amount calculated as if it represented cess on the said 3 per cent. of the assessable value, on Free On Board basis, within the export obligation period of eight years from the date of issue of the said authorisation: Provided that additional duty of customs shall not be taken for computation for the purpose of fixation of export obligation when the Cenvat Credit in respect of additional duty of customs has not been taken: Provided further that ....
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....ical up-gradation as per conditions specified in Para 5.8 of the Foreign Trade Policy or by small scale industry units as defined in paragraph 5.2 of the Foreign Trade Policy, as the case may be, for the purpose of fixing the export obligation the words 'eight times' in this condition shall be read as 'six times' and the export obligation shall be fulfilled within a period of eight years from the date of issue of authorisation subject to the further condition that in the case of Small Scale Industry (SSI) units the landed Cost Insurance Freight (CIF) value of such imported capital goods under the scheme shall not exceed rupees fifty lakhs and total investment in plant and machinery after such imports shall not exceed the SSI limit: Provided also that the export obligation shall be 50% of the export obligation specified above to be fulfilled within a period of eight years in the case of spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures, tools and refractory for initial lining, for the existing plant and machinery (imported earlier, under para 5.23 of Handbook of Procedures Volume 1 or otherwise), subject to the condition that the CIF value of impor....
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.... notification relating to 'Export obligation' shall apply severally to each duty credit scrip, including the said scrip, issued against the said authorisation; (f) The exports and supplies made within the export obligation period specified in condition (7) shall count towards fulfillment of export obligation; (g) For fulfillment of export obligation, the payments against the exports/supplies should have been realised. (9) That where the first proviso to condition (7) is applied, the Cenvat Credit in respect of the additional duty of customs shall not been taken and at the time of registration of the said scrip a certificate, from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, to the effect that Cenvat Credit in respect of additional duty of customs on goods imported under the said authorisation has not been taken, is produced by the authorisation holder before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be: Provided that when the authorisation holder is not registered wit....
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.... applicable; (e) Undertaking from the authorisation holder to the effect that,- (i) The goods imported under the said authorisation have not been disposed of or transferred by sale or lease or any other manner till the date of last export against which the said scrip is issued; (ii) The duty remission in the said scrip does not include the duty paid, any portion of which has been rebated, including by way of duty drawback; and (iii) All the conditions have been complied with respect to the duty credit in the said scrip, and the said Deputy Commissioner or Assistant Commissioner, as the case may be, upon being satisfied, allows the said scrip to be registered and the Customs authority endorses details of the said scrip and the remark "Drawback not available on re-export" on the bill(s) of entry, and registers the said scrip; (15) That the said scrip and goods imported against it shall be freely transferable; (16) That the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods and the proper officer taking into ....
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....sation holder or his group company or managed hotel, which has the said authorisation under which imports were made subject to the condition that in such cases, additional export obligation imposed shall be over and above the average exports achieved by the authorisation holder or his group company or managed hotel in preceding three years for both the original and the substitute product(s) / service(s): Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tiny sector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture, carpet, coir and jute, the authorisation holder shall not be required to maintain the average level of exports: Provided also that in case of export of goods relating to aquaculture (including fisheries), the authorisation holder shall not be required to maintain the average level of exports subject to the condition that said authorisation has been obtained for goods other than fishing trawlers, boats, ships and other similar items: Provided also that the goods, excepting tools, imported under said authorisation by the aforesaid sectors, shall not be allowed to b....
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....anced by multilateral or bilateral agencies or Funds as notified by the Department of Economic Affairs (DEA), the Ministry of Finance (MOF) under International Competitive Bidding (ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide for tender evaluation without including customs duty; supply and installation of goods and equipments (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds as notified by DEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids may have been invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufactured abroad; (iv) Supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification, permits import of such goods at zero customs duty and the supply is made under ICB procedure; (v) Supply of goods to mega power projects as provided in sub-clause (ii) of clause (f) of para 8.2 of Foreign Trade Policy; (vi) Supply of goods to nuclear power projects through competitive bidding as provided in clause (j) of para 8.2 of Foreign Trade Policy;....
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....ue of the existing plant and machinery of the authorisation holder. 5. Motor cars, sports utility vehicles and all purpose vehicles. Table 2 S.No. Port, ICD, LCS Located at 1. Seaports Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, ^13[Dhamra, Dharamtar, ^14[Dighi, Gopalpur],] ^9[ Haldia (Haldia Dock Complex of Kolkata Port), Hazira (Surat),] Kakinada, ^2[Kandla, Kattupalli (Tamil Nadu), Kolkata], Krishnapatnam, Ennore (Tamilnadu) and Karaikal (Union territory of Puducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra, Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar. 2. Airports Ahmedabad, Bangalore, ^3[Bhubaneswar, Calicut, Chennai,] Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum, Varanasi and Visakhapatnam. 3. Inland Container Depots Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chettipalayam (Tamilnadu), Chheharata (Amritsar), Co....