The EPCG Scheme allows import of capital goods for production at a reduced customs duty of 5%, subject to an export obligation of 8 times the duty saved that must be fulfilled over 8 years. Capital goods imports for agricultural exports may be allowed at 0% duty. The scheme is available to manufacturers, merchant exporters, and service providers, with conditions that the capital goods must be used and the export obligation met. Export obligations can also be fulfilled through deemed exports or agricultural exports from agri zones over 12 years. Indigenous sourcing of capital goods provides benefits to domestic suppliers.
#EPCG Scheme# By SN Panigrahi
EPCG Scheme allows import of capital goods (except those specified in negative list in Appendix 5 F) for pre-production, production and post-production at zero customs duty.
Capital goods imported under EPCG Authorisation for physical exports are also exempt from IGST and Compensation Cess upto 31-03-2020 only
Export Credit Guarantee Corporation of IndiaIsha Joshi
Export Credit Guarantee Corporation of India Ltd. ( ECGC ) is a Government of India Enterprise which provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking , insurance and exporting community. Over the years, it has evolved various export credit risk insurance products to suit the requirements of Indian exporters and commercial banks. ECGC is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid up capital of the Company is Rs. 1200 Crores and the authorized capital is Rs. 5000 Crores.
ECGC is essentially an export promotion organization, seeking to improve the competitive capacity of Indian exporters by giving them credit insurance covers comparable to those available to their competitors from most other countries. It keeps its premium rates at the lowest level possible.
EXPORTS FROM INDIA SCHEME
EXPORTS FROM INDIA SCHEME
OBJECTIVE:-
Main objectective is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs involved.
To provide exporters a level playing field.
NATURE OF REWARDS
Duty Credit Scrips shall be granted as rewards under MEIS and SEIS.
The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable.
The Duty Credit Scrips can be used for :
(i) Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A.
(ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification.
(iii) Payment of service tax on procurement of services as per DoR notification.
(iv)Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.
MERCHANDISE EXPORTS FROM INDIA SCHEME
(MEIS)
INTRODUCTION
In the new Foreign Trade Policy-2015-2020, with effect from 1.4.2015,Merchandise Exports from India Scheme (in short, also known as MEIS) has beenannounced by the Government. It not only replaces five similar incentive schemesavailable under the Foreign Trade Policy 2009-2014, but it rationalize the incentivesunder the erstwhile schemes, removes various kind of restrictions and significantlyenlarges the scope of the earlier schemes. Unlike earlier Schemes, this scheme hasbeen made applicable to exports made by SEZ units.
SCHEMES REPLACED BY MEIS
(i) Focus Product Scheme (FPS),
(ii) Market Linked Focus Product Scheme (MLFPS),
(iii) Focus Market Scheme (FMS),
(iv) Agri. Infrastructure Incentive Scrip (AIIS),
(v) Vishesh Krishi Gramin Upaj Yojana (VKGUY).
Objective of Merchandise Exports from India Scheme (MEIS) is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced /manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.
SALIENT FEATURES OF THE SCHEME
Grants rewards in the form of Duty Credit Scrip to the exporter on export of notified goods, which have been produced/ manufactured in India.
Rewards for export of notified goods to notified markets payable as percentage of realized FOB value (in free foreign exchange).
Exports of specified goods through courier or foreign post office using ecommerce of FOB value upto Rs.25000 per consignment entitled for rewards under the scheme. In case of value of consignment being more than Rs.25000/-, benefit is limited on the value of Rs. 25000/- only.
Scrip itself and Goods imported/ domestically procured against the scrip are freely transferable.
Certain specified categories of export or export goods are not eligible for benefit under the Scheme.
#EPCG Scheme# By SN Panigrahi
EPCG Scheme allows import of capital goods (except those specified in negative list in Appendix 5 F) for pre-production, production and post-production at zero customs duty.
Capital goods imported under EPCG Authorisation for physical exports are also exempt from IGST and Compensation Cess upto 31-03-2020 only
Export Credit Guarantee Corporation of IndiaIsha Joshi
Export Credit Guarantee Corporation of India Ltd. ( ECGC ) is a Government of India Enterprise which provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking , insurance and exporting community. Over the years, it has evolved various export credit risk insurance products to suit the requirements of Indian exporters and commercial banks. ECGC is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid up capital of the Company is Rs. 1200 Crores and the authorized capital is Rs. 5000 Crores.
ECGC is essentially an export promotion organization, seeking to improve the competitive capacity of Indian exporters by giving them credit insurance covers comparable to those available to their competitors from most other countries. It keeps its premium rates at the lowest level possible.
EXPORTS FROM INDIA SCHEME
EXPORTS FROM INDIA SCHEME
OBJECTIVE:-
Main objectective is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs involved.
To provide exporters a level playing field.
NATURE OF REWARDS
Duty Credit Scrips shall be granted as rewards under MEIS and SEIS.
The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable.
The Duty Credit Scrips can be used for :
(i) Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A.
(ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification.
(iii) Payment of service tax on procurement of services as per DoR notification.
(iv)Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.
MERCHANDISE EXPORTS FROM INDIA SCHEME
(MEIS)
INTRODUCTION
In the new Foreign Trade Policy-2015-2020, with effect from 1.4.2015,Merchandise Exports from India Scheme (in short, also known as MEIS) has beenannounced by the Government. It not only replaces five similar incentive schemesavailable under the Foreign Trade Policy 2009-2014, but it rationalize the incentivesunder the erstwhile schemes, removes various kind of restrictions and significantlyenlarges the scope of the earlier schemes. Unlike earlier Schemes, this scheme hasbeen made applicable to exports made by SEZ units.
SCHEMES REPLACED BY MEIS
(i) Focus Product Scheme (FPS),
(ii) Market Linked Focus Product Scheme (MLFPS),
(iii) Focus Market Scheme (FMS),
(iv) Agri. Infrastructure Incentive Scrip (AIIS),
(v) Vishesh Krishi Gramin Upaj Yojana (VKGUY).
Objective of Merchandise Exports from India Scheme (MEIS) is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced /manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.
SALIENT FEATURES OF THE SCHEME
Grants rewards in the form of Duty Credit Scrip to the exporter on export of notified goods, which have been produced/ manufactured in India.
Rewards for export of notified goods to notified markets payable as percentage of realized FOB value (in free foreign exchange).
Exports of specified goods through courier or foreign post office using ecommerce of FOB value upto Rs.25000 per consignment entitled for rewards under the scheme. In case of value of consignment being more than Rs.25000/-, benefit is limited on the value of Rs. 25000/- only.
Scrip itself and Goods imported/ domestically procured against the scrip are freely transferable.
Certain specified categories of export or export goods are not eligible for benefit under the Scheme.
Key Takeaways:
Export Promotion Schemes in India
Analysis of WTO' Ruling
Schemes adopted by Member Nations
Alternatives to Export Promotion Schemes
Way forward
Inline image 1
WORLD TRADE SERVICES
Advisory & Consultancy for Export & Import Incentives
WTS….is Emerging Export Import Consultancy Firm Promoted by Experienced & Expert Foreign Trade Consultant and Advocate.
WTS offer a prompt and hassle free Import Export Consultancy work like Import Export Documentation, Custom Clearance, Fema Cases, Freight Forwarding and DGFT Applications i.e. IEC/VKUY/ FMS/FPS/MIES/EPCG/DFIA /EXPORT HOUSE/100% EOU/SEZ/ APPROVAL/NORMS FIXATION and APEAL CASES.
WTS handle all comprehensive paper work with ATMOST CARE and provide Excellent/ valuable Services on Export Import Matters to our valued clients. We strive hard to ensure prompt execution of all necessary documents and formalities as per current EXIM POLICY. Through proper and professional approach we save our clients TIME and MONEY and Control Hidden Cost/Overhead Expenses.
We have Design SMS/Email System to update clients of their day to day paper works and DGFT Applications status.
Our Result Oriented Excellent EXIM Consultancy Services lead us a Emerging Export Import Consultancy Firm in India.
WTS is active Player in DUTY FREE IMPORT LICENCE Sale/Purchase having tie-up with leading Exporters - Importers for Buying and Selling DEPB/VKUY/FMS/FPS&DFIA Licences at Best Competitive Market Premium.
Inline image 3
OUR SERVICES
IEC – Import Export Code
RCMC - REGISTRATION & EXPORT COMPANY SET-UP
VKGUY License – Vishesh Krishi and Gram Upaj Yojana
FMS License - Focus Market Scheme
FPS License – Focus Product Scheme
MLFPS Licence - Market Linked Focus Products Scheme
MEIS Licence - Merchandise Export from India Scheme
EPCG License – Export Promotion Capital Goods
DFIA License – Duty Free Authorisation
ADVANCE AUTHORISATION SCHEME
EXPORT HOUSE CERTIFICATE
OTHER SERVICES
- AGRI. INFRASTRUCTURE INCENTIVE SCRIP.
- SEZ APPROVAL.
- ISO 9000/ISO 14000.
- D.S.C.: E-TOKEN INSTALLATION AND RENEWAL.
- CUSTOM CLEARANCE.
- FREIGHT FORWARDING & CHARTERING.
- IMPORT SOURCING.
- JOINT VENTURE.
Duty exemption and Remission Schemes FTP 2015-20Harshit Rastogi
This presentation covers chapter 4 of the Foreign Trade Policy 2015-20 of India. This particular section has greatly helped Indian Exporters to be competitive with their global counterparts. However, this has also comes with its own problems.
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the provisions relating to import and export of goods under the customs law.
In this presentation, we will discuss about the procedure of importing goods, acquiring licenses, various types of licenses, import evidence, acquisition of foreign currency. WE will also discuss about the rules and restrictions of import and exports.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Key Takeaways:
Export Promotion Schemes in India
Analysis of WTO' Ruling
Schemes adopted by Member Nations
Alternatives to Export Promotion Schemes
Way forward
Inline image 1
WORLD TRADE SERVICES
Advisory & Consultancy for Export & Import Incentives
WTS….is Emerging Export Import Consultancy Firm Promoted by Experienced & Expert Foreign Trade Consultant and Advocate.
WTS offer a prompt and hassle free Import Export Consultancy work like Import Export Documentation, Custom Clearance, Fema Cases, Freight Forwarding and DGFT Applications i.e. IEC/VKUY/ FMS/FPS/MIES/EPCG/DFIA /EXPORT HOUSE/100% EOU/SEZ/ APPROVAL/NORMS FIXATION and APEAL CASES.
WTS handle all comprehensive paper work with ATMOST CARE and provide Excellent/ valuable Services on Export Import Matters to our valued clients. We strive hard to ensure prompt execution of all necessary documents and formalities as per current EXIM POLICY. Through proper and professional approach we save our clients TIME and MONEY and Control Hidden Cost/Overhead Expenses.
We have Design SMS/Email System to update clients of their day to day paper works and DGFT Applications status.
Our Result Oriented Excellent EXIM Consultancy Services lead us a Emerging Export Import Consultancy Firm in India.
WTS is active Player in DUTY FREE IMPORT LICENCE Sale/Purchase having tie-up with leading Exporters - Importers for Buying and Selling DEPB/VKUY/FMS/FPS&DFIA Licences at Best Competitive Market Premium.
Inline image 3
OUR SERVICES
IEC – Import Export Code
RCMC - REGISTRATION & EXPORT COMPANY SET-UP
VKGUY License – Vishesh Krishi and Gram Upaj Yojana
FMS License - Focus Market Scheme
FPS License – Focus Product Scheme
MLFPS Licence - Market Linked Focus Products Scheme
MEIS Licence - Merchandise Export from India Scheme
EPCG License – Export Promotion Capital Goods
DFIA License – Duty Free Authorisation
ADVANCE AUTHORISATION SCHEME
EXPORT HOUSE CERTIFICATE
OTHER SERVICES
- AGRI. INFRASTRUCTURE INCENTIVE SCRIP.
- SEZ APPROVAL.
- ISO 9000/ISO 14000.
- D.S.C.: E-TOKEN INSTALLATION AND RENEWAL.
- CUSTOM CLEARANCE.
- FREIGHT FORWARDING & CHARTERING.
- IMPORT SOURCING.
- JOINT VENTURE.
Duty exemption and Remission Schemes FTP 2015-20Harshit Rastogi
This presentation covers chapter 4 of the Foreign Trade Policy 2015-20 of India. This particular section has greatly helped Indian Exporters to be competitive with their global counterparts. However, this has also comes with its own problems.
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the provisions relating to import and export of goods under the customs law.
In this presentation, we will discuss about the procedure of importing goods, acquiring licenses, various types of licenses, import evidence, acquisition of foreign currency. WE will also discuss about the rules and restrictions of import and exports.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
The success of export promotions can be judged from the growth of exports and the dynamism of the export sector. An effective export promotion should compensate for the disadvantages of the national exporters and should make the export business profitable enough to lure entrepreneurs to this sector.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Best chartered accountant services in India with all kind of Tax and accounting. Our experienced and qualified chartered accountant professionals can help you in managing your personal or corporate finances effectively.
Advance Authorisation Scheme PPT - Latest Updates Included | AfleoAfleoConsultants
Advance Authorisation Scheme is introduced to import duty-free raw materials and to export those finished goods.
Advance Authorisation Scheme PPT gives all the information about objective of Advance Authorisation scheme / Types of Schemes under Chapter- 4 / SION Norms / Self Declaration Norms / Self Ratification Norms / Prior Fixation of Norms / Value Addition / Pre-Import Condition / Actual User Condition / Validity Period of Import & Re-validation / Export Obligation (Extension in EO) / Duty Free Import Authorisation (DFIA).
EPCG - The objective of the Export Promotion Capital Goods (EPCG) Scheme is to facilitate import of capital goods for producing quality goods and services and enhance India's manufacturing competitiveness.
On 18 February 2022, India and the United Arab Emirates (UAE) signed the India-United Arab Emirates Comprehensive Economic Partnership Agreement (“CEPA”), which came into force on 1 May 2022. The commitments made under the CEPA were ratified vide Customs Notification No. 22/2022-customs dated 30 April 2022.
This law is adopted by the National Assembly of the Kingdom of Cambodia in Phnom Penh on August 4, 1994 during the extraordinary session of the first legislature.
Phnom Penh, August 4, 1994
The Acting Chairman of the National Assembly
LOY SIM CHHEA
---
Source: http://www.caminfoservices.com/cdc/law-on-the-investment_940805.html
Transport and Marketing Assistance Scheme (TMA) for ExportersAfleoConsultants
To reduce the unnecessary charges of export transportation on agricultural products, the Transport and Marketing Assistance Scheme i.e. TMA Scheme is initiated. With the objective of the expansion of the agriculture sector within the global market.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Unveiling the Secrets How Does Generative AI Work.pdf
Export promotion capital goods scheme
1. EXPORT PROMOTION CAPITAL GOODS SCHEME
EPCG Scheme
5.1
The scheme allows import of capital goods for pre
production, production and post production at 5% Customs
duty subject to an export obligation equivalent to 8 times of
duty saved on capital goods imported under EPCG scheme
to be fulfilled over a period of 8 years reckoned from the
date of issuance of licence. Capital goods would be allowed
at 0% duty for exports of agricultural products and their
value added variants.
However, in respect of EPCG licences with a duty saved of
Rs.100 crore or more, the same export obligation shall be
required to be fulfilled over a period of 12 years.
The capital goods shall include spares, tools, jigs, fixtures,
dies and moulds. EPCG licence may also be issued for
import of components of such capital goods required for
assembly or manufacturer of capital goods by the licence,
catalyst and consumable for the existing and new plant and
machinery may also be imported under the EPCG scheme .
However, import of motor cars, sports utility vehicles/ all
purpose vehicles shall be allowed only to hotels, travel
agents, tour operators or tour transport operators whose total
foreign exchange earning in current and preceding three
licencing years is Rs 1.5 crores. However, the parts of
motor cars, sports utility vehicles/ all purpose vehicles such
as chassis etc cannot be imported under the EPCG Scheme.
EPCG for Projects
5.1B
An EPCG licence can also be issued for import of capital
goods for supply to projects notified by the Central Board of
Excise and Customs under S.No 441 of Customs Exemption
Notification No 21/2002 dated 01.03.2002 wherein the
basic customs duty on imports is 10% with a CVD of 16%.
The export obligation for such EPCG licences would be
eight times the duty saved. The duty saved would be the
difference between the effective duty under the aforesaid
Customs Notification and the concessional duty under the
2. EPCG Scheme.
Eligibility
5.2
The scheme covers manufacturer exporters with or
without supporting manufacturer(s)/ vendor(s), merchant
exporters tied to supporting manufacturer(s) and service
providers.
Conditions for import
of Capital Goods
5.3
Import of capital goods shall be subject to Actual User
condition till the export obligation is completed.
Export obligation
5.4
The following conditions shall apply to the fulfillment of
the export obligation:(i)
The export obligation shall be fulfilled by the
export of goods capable of being manufactured or
produced by the use of the capital goods imported
under the scheme.
The export obligation may also be fulfilled by the
export of same goods, for which EPCG licence
has been obtained, manufactured or produced in
different manufacturing units of the licence
holder/specified supporting manufacturer (s).
When Capital Goods are imported for pre/ postproduction or license is taken for import of
spares, the license holder shall fulfill the export
obligation by export of products manufactured
from the plant / project to which the pre/ postproduction capital goods/ spares are related.
The import of capital goods for creating storage
and distribution facilities for products
manufactured or services rendered by the EPCG
licence holder would be permitted under the
EPCG Scheme
(ii)
The export obligation under the scheme shall be, in
addition to any other export obligation undertaken by
the importer, except the export obligation for the
same product under Advance Licence, DFRC, DEPB
or Drawback scheme.
(iii) The export obligation can also be fulfilled by the
supply of ITA-1 items to the DTA provided the
realization is in free foreign exchange.
3. (iv) Exports shall be physical exports.
EPCG for agro units
5.5.2
In the case of EPCG licences issued to agro units in the
agri export zones, a period of 12 years reckoned from the
date of issue of the licence would be permitted for the
fulfillment of export obligation.
The agro units in the agri export zones would also have the
facility of moving the capital good (s) imported under the
EPCG within the agri export zone.
An LUT/ Bond in lieu of BG may be given for EPCG
licence granted to units in the Agri Export Zones provided
the EPCG licence is taken for export of the primary
agricultural product (s) notified in Appendix 15 or their
value added variants.
Indigenous Sourcing of 5.6
Capital Goods and
benefits to Domestic
Supplier
Benefits to Domestic
Supplier
5.7
A person holding an EPCG licence may source the capital
goods from a domestic manufacturer instead of importing
them. The domestic manufacturer supplying capital goods
to EPCG licence holders shall be eligible for deemed
export benefit under paragraph 8.3 of the Policy.
In the event of a firm contract between the EPCG licence
holder and domestic manufacturer for such sourcing, the
domestic manufacturer may apply for the issuance of
Advance Licence for deemed exports for the import of
inputs including components required for the manufacturer
of said capital goods.
The domestic manufacturer may also replenish the inputs
including components after supply of capital goods to the
EPCG licence holders.
Fixation of Export
Obligation
5.7A
In case of direct imports, the export obligation relating to
the EPCG licence shall be reckoned with reference to the
duty saved value on the CIF value of capital goods
(including spares, jigs, fixtures, dies and moulds) actually
imported. In case of domestic sourcing, the export
obligation relating to EPCG shall be reckoned with
4. reference to the notional Customs duties saved on the FOR
of capital goods (including spares, jigs, fixtures, dies and
moulds).
5.8
Service provider in Agri export zone shall have the facility
to move or shift the capital goods within the zone provided
he maintains accurate record of such movements.
However, such equipments shall not be sold or leased by
the licence holder.
5.9
Maintenance of
Average exports under
EPCG
As per the provisions of para 5.4(i) , the EPCG licence
holder would have to maintain the average level of exports
equivalent to the average of the exports in the preceding
three licencing years for the same and similar products
except for exempted categories given in Handbook (Vol 1)
during the entire period of export obligation.
Notwithstanding the above, the licence holder shall
maintain at least 75% of the average exports in any
particular year (s) provided the same is offset by excess
exports to fulfil the average in other year (s).
5.10
Technological
Upgradation of existing
EPCG machinery
EPCG licence holders can opt for Technological
Upgradation of the existing capital good imported under
the EPCG licence.
The conditions governing the Technological Upgradation
of the existing capital good are as under:
(i)
The minimum time period for applying for
Technological Upgradation of the existing capital
good imported under EPCG is 5 years from the date
of issuance of the licence.
(ii) The minimum exports made under the old capital
good must be 40% of the total export obligation
imposed on the first EPCG licence
(iii) The export obligation would be refixed such that the
total export obligation mandated for both the capital
goods would be the sum total of 6 times the duty
saved on both the capital goods.