The notification exempts capital goods imported under EPCG Scheme

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 160/92-Cus., dated 20-4-1992

Export Promotion Capital Goods (EPCG) Scheme.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts capital goods, when imported into India by an importer specified in column (2) of the Table hereto annexed from so much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table and the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-

(i) the capital goods imported are covered by a valid licence issued on or before 30th April, 1995 under the Export Promotion Capital Goods (EPCG) Scheme, in terms of the Export and Import Policy (hereinafter referred to as the Policy) and the said licence is produced for debit at the time of clearance;

(ii) the importer, at the time of clearance, shall produce to the Assistant Commissioner of Customs or Deputy Commissioner of Customs a certificate from the licensing authority for having executed a bond under paragraph 45 of the Policy; and

(iii) the importer at the time of clearance of the said capital goods shall make a declaration before the Assistant Commissioner of Customs or Deputy Commissioner of Customs, in such form as he may specify, binding himself to pay on demand an amount equal to the duty leviable on such capital goods but for the exemption contained herein in respect of which the conditions specified in column (2) of the Table have not been complied with.

TABLE

  Explanation. – In this notification, –

(i) “capital goods” means any plant, machinery, equipment or accessories required by an importer for –

(a) manufacture or production of goods and includes packaging machinery and equipment, refractories, refrigeration equipments, power generating sets, machine tools, catalysts for initial charge required for and imported alongwith capital equipments, equipments and instruments for testing, research and development, quality and pollution control;

(b) use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry and sericulture; and includes spare parts required for the maintenance of such capital goods not exceeding 10% of CIF value of the capital goods actually imported;

(ii) “Export and Import Policy” means the Export and Import Policy, 1 April 1992 – 31 March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce, No. 1-ITC (PN) 92-97, dated the 31st March, 1992, as amended from time to time;

(iii) “Licensing Authority” means an authority competent to grant a licence under the Import (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947 (18 of 1947), or the Director General of Foreign Trade appointed under 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;

(iv) “CIF value” in relation to second-hand capital goods, means CIF value of the corresponding new capital goods as may be determined by the Licencing Authority.

[Notification No. 160/92-Cus., dated 20-4-1992 as ameded by Notifications No. 306/92-Cus., dated 28-12-1992; No. 124/93-Cus., dated 20-5-1993; No. 101/95-Cus., dated 26-5-1995 and No. 108/95-Cus., dated 5-6-1995.]