Circular No. 4/97-Cus.
dated 19/2/97

F. No. 605/381/96-DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject:  Acceptance of Chartered Engineer’s Certificate as proof of installation of capital goods for the premises for the same were imported.

Kind attention is drawn to condition (6) of Notification No. 110/95-Cus. dated 5.6.95 which provides for installation of capital goods imported under EPCG Scheme and for a certificate being obtained from Jurisdictional Asstt. Commissioner of Central Excise, to be produced within 6 months from the date of completion of imports or within the extended period as allowed by the Asst. Commissioner of Customs certifying that the capital goods imported have been installed in the importer’s factory / premises. The hotel industry represented to the Ministry that as they are not under Central Excise control, and their hotels are spread all over India, it is difficult to obtain the said Certificate from the Central Excise field formations prescribed under condition (6) of Notification No.110/95-Cus.

2. The matter has been considered by the Ministry and it has been decided that the Chartered Engineer’s Certificate in place of a Certificate from the Asstt. Commissioner of. Central Excise may be accepted as a proof of having installed the capital goods in the importer’s premises for which the EPCG licence was taken. The said facility may be extended to all the service providers including hotel industry subject to the importer also furnishing a certificate from the Licencing Authority in token of having fulfilled export obligation. However in cases where the importer is a manufacturer exporter, the Custom Houses must still insist on a certificate from the Asstt. Commissioner of Central Excise or/and from supporting manufacturer declared by the merchant exporter while applying for 15% EPCG licence.

3. A Public Notice for trade and Standing Order for the departmental officers may be issued, and a copy of the same be sent to the Directorate of Drawback and DGI AC & CE.

(Sunil Kumar)
Director (Drawback

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