Download Document

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
S.No. Description of importer
Rate of
duty
(1) (2) (3)
1.
Importer undertaking an export obligation equivalent to three times the CIF value of the said capital goods
over a period of four years under paragraph 38 of the Policy
25% ad
valorem
2.
Importer undertaking an export obligation equivalent to four times the CIF value of the aforesaid capital goods
over a period of five years under paragraph 38 of the Policy
15% ad
valorem
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.]