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EPCG License Consultants, EPCG scheme consultants, How to Apply EPGC License , export promotion capital goods scheme 2020, EPCG License Redemption Procedure, Benefits of EPCG license
Our Professional experts assist you to get EPCG Benefits:
- We assist you in fulfilling all requirements of EPCG license procedure
- Quantifying for the EPCG benefits under the listing down requirements pertaining to it.
- Obtaining EPCG Authorization from DGFT
- Handling all documentation and procedural requirement related to EPCG
- Take care all compliances with DGFT after grand of EPCG license
- Getting Export Obligation Discharge certificate and release of Bond after fulfilling the export obligation.
EPCG scheme can be taken anytime before and after export. The export requirement discharged would require fulfilment of specific export obligation in addition to the existing Average export performance over a period of three years.
Export Promotion Capital Goods (EPCG) scheme is a scheme which allows an exporter to import of capital goods including spares for pre-production, production and post-production at zero Customs duty, for exports. Also, IGST on import of capital goods under EPCG is exempted till 31st March 2020.
Who all are covered under the EPCG Scheme?
- Manufacturer exporters with or without supporting manufacturer(s),
- Merchant exporters tied to supporting manufacturer(s) and
- Service Providers including Common Service Provider (CSP).
Can a new exporter avail this scheme?
Yes, in such case, there will be no average export obligation.
Which types of capital goods can be imported into India under the EPCG scheme?
The following types of capital goods can be imported into India at zero customs duty under the EPCG scheme:
- Plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion.
- Packaging machinery and equipment
- Refractories for initial lining
- Refrigeration equipment
- Power generating sets
- Machine tools
- Catalysts for initial charge
- Equipment and instruments for testing, research and development, quality and pollution control.
- Capital goods used in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as those used in services sector.
- Computer software systems
- Spares, moulds, dies, jigs, fixtures
- Catalysts for initial charge plus one subsequent charge
Can the Capital goods be sourced indigenously?
EPCG Authorization holder may source Capital Goods from domestic manufacturers also.
What Documents are required for EPCG License?
- Treasury Receipt Challan (if fee has not been paid electronically) evidencing payment of application fee in terms of Appendix 2L.
- Self-certified copy of MSME/IEM/LOI/IL in case of products or a self-certified copy of Service Tax Registration in case of Service Providers. (in case of Service Providers, who are not registered with Service Tax authorities, a declaration in this regard will be submitted as a part of the application (declaration no. 6), service tax registration is not required to be submitted. In such cases RCMC from EPC concerned will suffice).
- Certificate from a Chartered Engineer in the format given in Appendix 5A.
- Certificate of Chartered Accountant / Cost Accountant / Company Secretary in Appendix 5B.
For details, please click http://dgft.gov.in/sites/default/files/ANF-5A.pdf
What is the time limit for issuance of EPCG authorization?
As per the Foreign Trade Policy, an application, which is complete in all respect, should be processed by DGFT in 3 days.
What are the conditions to be fulfilled under EPCG Scheme?
There are two types of export obligation that are mandatory:
- Average export obligation for preceding 3 years exports.
- Specific exports 6 times of the duty saved amount in six years.
How the Export Obligation under an EPCG to be fulfilled?
Export Obligation under EPCG Scheme is required to be fulfilled by export of goods manufactured/services rendered through the Machine by the applicant
How calculation of EO is done?
EO is reckoned with reference to actual Duty saved in case of direct import. On domestic sourcing, EO is reckoned with reference to notional Customs Duties saved on FOR value.
Is there any exemption from maintenance of Average Export Obligation?
Exporters of(i) Handicrafts, (ii) Handlooms, (iii) Cottage & Tiny sector, (iv) Agriculture, (v) Aqua-culture (including Fisheries), Pisciculture, (vi) Animal husbandry, (vii) Floriculture & Horticulture, (viii) Poultry, (ix) Viticulture, (x) Sericulture, (xi) Carpets, (xii) Coir, and (xiii) Jute are exempted.
What is Installation Certificate and where is it required to be submitted?
Installation Certificate confirms installation of capital goods at factory/premises of authorization holder or his supporting manufacturer. It may be obtained from Jurisdictional Customs Authority or Chartered Engineering. It is required to be submitted to RA within 6 months from the date of completion of imports.
Whether exports made through third party will be considered for EO?
Yes, where the names of both Authorization holder and supporting manufacturer are indicated in export documents like Shipping Bill/ Bill of Exports etc. along with EPCG authorization number.
Whether a Capital goods imported by one unit can be transferred to other unit?
The transfer of Capital Goods from one unit of the company to their another unit may be allowed by EPCG Committee in DGFT subject to the condition that both the addresses are mentioned in IEC and RCMC and submission of fresh installation certificate is done within 6 months of such transfer.
What are the green technologies products? Is any special benefit is allowed under the Scheme for exports of such products?
Green technology products are: equipment for solar energy de-centralised and grid connected products, bio-mass gassifier, bio-mass or waste boiler, vapour absorption chillers, waste heat boiler, waste heat recovery units, unfired heat recovery steam generators, wind turbine, solar collector and parts thereof, water treatment plants, wind mill and wind mill turbine or engine, other generating sets - wind powered, electrically operated vehicles – motor cars, electrically operated vehicles – lorries and trucks, electrically operated vehicles – motor cycle and mopeds, and solar cells.
Exports of these products provides for reduced export obligation of 75%.
What is Post Export EPCG Duty Credit Scrip?
It is available to exporters who intend to import on full payment of applicable duties, taxes and cess in cash and chose to opt this Scheme.
What is the obligation under Post Export EPCG Scheme? What the procedure to avail the benefit?
Specific EO is 85% of the applicable specific EO. However, average EO shall remain unchanged.
A request for issuance of Duty Credit Scrip may be filed in ANF 5B in proportion of EO fulfilled within the specified export obligation period along with proof of actual duty payment , installation certificate, proof of EO fulfillment, etc. RA issues freely transferable duty credit scrip equivalent to proportionate EO fulfilled.
Whether export under EPCG scheme is eligible for MEIS and other schemes?
Yes, MEIS benefit is over and above all schemes under the policy.
What should be done after fulfilling of export obligation?
An application on the prescribed form ANF 5C along with the specified documents is required to be submitted to licensing authority for redemption.
1. What is the meaning of SCOMET? SCOMET is an acronym for Special Chemicals, Organisms, Materials, Equipment and Technologies.
2. What are dual-use goods and technologies? Dual-use items are goods, software, technology, chemicals etc. which can be used for both civil and military applications. Such items require an authorization for exporting out of the country. India’s list of items which need an export license is known as the SCOMET list.
3. Is export of SCOMET items regulated? Yes, export of items in the SCOMET list is regulated as per India’s Foreign Trade Policy. Export is either prohibited or is permitted under an authorization.
4. Where can I find the list of SCOMET items? Appendix 3 of Schedule 2 of ITC (HS) Classification contains the control list of India which is also referred to as the SCOMET list. You can go to the DGFT website to see the complete list. The link for the same is: In the list as appearing in Appendix 3 of Schedule 2 of ITC (HS) Classification, SCOMET items are listed under eight (8) categories as follows: · Category 0: Nuclear material, nuclear-related other materials, equipment and technology.
Category 1: Toxic chemical agents and other chemicals
Category 2: Micro-organisms, toxins
Category 3: Material, Materials Processing Equipment, and related technologies
Category 4: Nuclear-related other equipment, assemblies and components; test and production equipment; and related technology, not controlled under Category 0
Category 5: Aerospace systems, equipment including production and test equipment, related technology and specially designed components and accessories thereof.
Category 6: (Reserved)
Category 7: Electronics, computers, and information technology including information security.
Each category contains exhaustive listing of items covered under that category. Special conditions applicable to items under different categories are mentioned under each category. Read the documents available at the following links:-
http://dgft.gov.in/Exim/2000/NOT/itc(hs)/Eschedule2.pdf · http://dgft.gov.in/Exim/2000/NOT/NOT16/noti0516.pdf · http://dgft.gov.in/Exim/2000/NOT/NOT13/not11613.pdf · http://dgft.gov.in/Exim/2000/NOT/NOT13/not2613.htm · http://dgft.gov.in/exim/2000/not/not12/not_annex3712.pdf
5. Who gives license for Category 0 items in the SCOMET list?
Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorizations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items. 6. What are the guidelines for Nuclear Exports? · Guidelines for Nuclear Transfers (Exports) are available at http://www.dae.nic.in/?q=node/147 · List of "Prescribed Substances, Prescribed Equipments and Technology" can be seen at http://www.dae.nic.in/writereaddata/pres_subs_0516.pdf
6. How do I apply for an authorization to export SCOMET items? Application for grant of Export Authorisation has to be made to DGFT through an online system. Please visit the DGFT website at http://dgft.gov.in. Firstly, you should read the detailed guidelines and get all the required documents before making the application.
