EPCG [Export Promotion Capital Goods Scheme]
- To be executed at port of registration of first Authorisation in FY: Financial Yearwise at CHs where ECES 1.5.implemented.
- Undertaking that authoriztion is not registered elsewhere is to be given
- When bond value exhausted, topping up on payment of stamp duty applicable to new bond - through crossed stamp paper.
- Where Bank Guarantee required, may be furnished as and when the goods are imported and the benefits of concessional duties availed.
- AO at port of import shall independely arrive at the quantum of BG
- BG shall be furnished by the authorization holder only at the port where the common bond has been executed, the Customs authorities there shall monitor to keep it alive
- To cover only the duty ordinarily leviable on the goods but for the exemption.
- Similar analogy will apply for quantification of the BG amount. CBEC Circular 4/2009-Cus. dt. 28.1.2009
- Bond should include a condition that the interest and other charges will be paid by the authorization holder in case of non compliance of the conditions of the notification.
- Nil – Exporters with turnover of Rs.5 crores having good track record for 3 years, PSU, Star Export House, Manufacturer Exporters/Service provides registered with C.Ex./Service Tax authorities, exporting for 2 financial years with Rs.1 crore export in preceding FY.
- 15% Manufacturer Exporters not covered above, Agri Export Zones, Established Service provides who havea free FE earnings of Rs.50 during preceding FY with clean track record.
- 25% Service providers in port handling sector appointed as custodians by Customs/CE authorities import of capital goods under EPCG scheme only.
- 100% - others. CBEC Circular 17/2009-Cus dt 25.5.2009
- Exemption from Bank Guarantee - Authorization holder to furnish an affidavit regarding any case booked against him during previous three FYs. Random cross-check by Commr.of Customs field formation. Cir.6/2011 Cus dt 18.1.2011
Form of Bond:
In respect of Zero duty EPCG scheme, Condition 1 of the bond in the form to read “I/We, the obligor(s) fulfil all the conditions of the Notification Nos. 101/09-Cus., and 102/09-Cus. both dated 11.9.09 and shall observe and comply with all its terms and conditions.” CBEC Cir.11(A)/2011 Cus dt 28.2.2011
Number to be indicated against each item in BE.
of importer, IEC of the Bond-holder and IEC of Authorization holder to be same.
Authorities of port of registration of commond bond to initiate action on
default of EO including denial of benefit of BG exemption for future imports.
for annual requirement may not indicate capital goods which can be imported but
shall indicate export product(s). Nexus Certificate [CEC] to be submitted to
customs. [Nofn No.92/2010-Cus.dt.10.9.10.]
duty scheme extended upto 31.3.2012 and also to some more items.
Scheme & SHIS not available simultaneously in the same year. CBEC Cir.38/2010
Cus dt 27.9.2010
- CEx officers will verify and issue installation certificate in respect of units registered with CEX department.
- For others independent Chartered Engineer will issue a certificate. For detailed procedure please read CBEC Circular 14/2008-Cus. dt. 26.9.2008
Export Obligation - Monitoring and verification: