{"id":463,"date":"2015-10-24T07:56:59","date_gmt":"2015-10-24T02:26:59","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=463"},"modified":"2021-12-15T15:46:36","modified_gmt":"2021-12-15T10:16:36","slug":"export-promotion-on-capital-goods","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/export-promotion-on-capital-goods\/","title":{"rendered":"export promotion on capital goods"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f3202f95023\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f3202f95023\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/export-promotion-on-capital-goods\/#EXPORT_PROMOTION_ON_CAPITAL_GOODS\" title=\"EXPORT PROMOTION ON CAPITAL GOODS\">EXPORT PROMOTION ON CAPITAL GOODS<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/export-promotion-on-capital-goods\/#ZERO_DUTY_EPCG_SCHEME\" title=\"ZERO DUTY EPCG SCHEME:\">ZERO DUTY EPCG SCHEME:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/export-promotion-on-capital-goods\/#CONCESSIONAL_3_DUTY_EPCG_SCHEME\" title=\"CONCESSIONAL 3% DUTY EPCG SCHEME:\">CONCESSIONAL 3% DUTY EPCG SCHEME:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/export-promotion-on-capital-goods\/#CURRENT_CHANGES_RELATED_TO_IEC_CODE_PROVISIONS_IN_FTP\" title=\"CURRENT CHANGES RELATED TO IEC CODE PROVISIONS IN FTP\">CURRENT CHANGES RELATED TO IEC CODE PROVISIONS IN FTP<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled89A.png\" rel=\"attachment wp-att-1483\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1483\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled89A-300x220.png\" alt=\"Untitled89A\" width=\"839\" height=\"615\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled89A-300x220.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled89A.png 582w\" sizes=\"(max-width: 839px) 100vw, 839px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"EXPORT_PROMOTION_ON_CAPITAL_GOODS\"><\/span><span style=\"color: #000080;\"><strong>EXPORT PROMOTION ON CAPITAL GOODS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Export promotion on <a href=\"https:\/\/carajput.com\/blog\/tag\/making-of-structures-for-support-of-capital-goods\/\">capital goods<\/a> is a scheme provided by Director General of Foreign Trade (DGFT), which provides a concession on custom duty on import of Capital Goods in order to promote Exports.<\/p>\n<p style=\"text-align: justify;\">This is a policy under which many schemes are available for different kinds of Industrial units under which the company needs to apply for the license to avail benefits under the scheme the company wants to opt for<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"ZERO_DUTY_EPCG_SCHEME\"><\/span><span style=\"color: #808000;\"><strong><span style=\"text-decoration: underline;\">ZERO DUTY EPCG SCHEME:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">This scheme allows the import of capital goods for pre-production, production, post-production purposes at Zero customs duty subject to an export obligation of 6 times duty saved over imports for 6 years.<\/p>\n<p style=\"text-align: justify;\">This is available to a variety of industries such as textiles, plastics, handicrafts, chemicals, ceramic products etc.<\/p>\n<p style=\"text-align: justify;\">But this scheme is not available to such exporters who are already covered under Technology Upgradation Fund Scheme (TUFS), Status Holder Incentive Scheme (SHIS), which are other schemes provided by DGFT.<\/p>\n<p style=\"text-align: justify;\">But if the business line under different schemes is different from the one covered under EPCG, such benefits can be availed.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CONCESSIONAL_3_DUTY_EPCG_SCHEME\"><\/span><span style=\"color: #808000;\"><strong><span style=\"text-decoration: underline;\">CONCESSIONAL 3% DUTY EPCG SCHEME:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">This scheme allows import of capital goods for pre-production, production, post-production purposes on payment of 3% of Basic custom duty subject to an export obligation of 8 times duty saved over imports for 8 years.<\/p>\n<p style=\"text-align: justify;\">Export Obligation of 6 times of duty saved for the Export Obligation Period of 12 years is available to Agri units and Cottage Sectors and EO of 6 times and EoP of 8 years is available to<a href=\"https:\/\/carajput.com\/services-ssi-registration.php\"> SSI units<\/a> whose investment does not exceed Rs.50 Lakhs<\/p>\n<p style=\"text-align: justify;\">Also, Motor cars can also be imported but such provision is available only to Hotels, Tourism industry and Tour Operators subject to the conditions such as:<\/p>\n<ol style=\"text-align: justify;\">\n<li>Total earnings from such Hotel and tourism industry in current and preceding three years should exceed Rs. 1.5 Crores<\/li>\n<li>Duty saved should not exceed 50% of average foreign exchange earnings from such hotel and tourism industry.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"3\">\n<li>Vehicle imported should be registered for tourism purpose only and a copy of registration should be submitted concerned Regional Authority (RA).<\/li>\n<li>However, vehicle parts cannot be imported under this scheme.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Second-Hand capital goods can also be imported under this scheme and can avail benefits of same.<\/p>\n<p style=\"text-align: justify;\">Spares, molds, Dies, Jigs, Fixtures, and Tools can also be imported under this scheme. Also, the same cane imported for existing machinery subject to an export obligation of 4 times duty saved in case of Concessional 3% duty scheme and 3 times of duty saved in case of Zero Duty scheme.<\/p>\n<p style=\"text-align: justify;\">Note: If any Countervailing Duty is paid in cash, that would not be taken into the computation of net duty saved.<\/p>\n<h3 class=\"entry-title\"><span class=\"ez-toc-section\" id=\"CURRENT_CHANGES_RELATED_TO_IEC_CODE_PROVISIONS_IN_FTP\"><\/span><span style=\"color: #ff9900;\">CURRENT CHANGES RELATED TO IEC CODE PROVISIONS IN FTP<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11412\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/3.jpg\" alt=\"\" width=\"692\" height=\"653\" \/><\/a><\/p>\n<p>Your <a href=\"https:\/\/www.caindelhiindia.com\/blog\/importer-exporter-code-registration-and-documentation\/\">IMPORT EXPORT CODE<\/a> required to be UPDATE. BEFORE 30 JUNE 2021 , Otherwise, your upcoming SHIPMENT HOLD will be hold,\u00a0 GOVERNMENT NOTIFICATION &#8211; NO 58\/ 2015-220 DATE 12FEB 2021<\/p>\n<p>All IMPORT EXPORT CODE holders are required to update and validate their IMPORT EXPORT CODE details, Even without any modifications from April to June each year via online systems, which does not allow their IEC to be deactivated and no activity for import or export.<\/p>\n<p>An IMPORT EXPORT CODE holder shall ensure that the IMPORT EXPORT CODE details are updated every year, during the period April-June, by electronic means.<\/p>\n<p>If IMPORT EXPORT CODE details have not been modified, the required details must also be confirmed online.<\/p>\n<p>If not updated within the prescribed time, an IMPORT EXPORT CODE shall be deactivated. On successful updating, IMPORT EXPORT CODE can therefore be deactivated.<\/p>\n<p>However, this would be without prejudice to any other measures taken to violate any other FTP provisions.<\/p>\n<p>IEC application and update processes in IMPORT EXPORT CODE are fully online, and the applicant can produce the IMPORT EXPORT CODE in accordance with the procedure detailed in the Procedure Manual.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11406\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/1-473x1024.jpg\" alt=\"\" width=\"584\" height=\"1264\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/1-473x1024.jpg 473w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/1-138x300.jpg 138w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/1.jpg 540w\" sizes=\"(max-width: 584px) 100vw, 584px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-11407\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2-942x1024.jpg\" alt=\"\" width=\"550\" height=\"598\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2-942x1024.jpg 942w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2-276x300.jpg 276w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2-768x835.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/2.jpg 993w\" sizes=\"(max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n<p>For query or help, contact:<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; EXPORT PROMOTION ON CAPITAL GOODS Export promotion on capital goods is a scheme provided by Director General of Foreign Trade (DGFT), which provides a concession on custom duty on import of Capital Goods in order to promote Exports. This is a policy under which many schemes are available for different kinds of Industrial units &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9933],"tags":[3422,3426,3425,3424,3423],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/463"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=463"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/463\/revisions"}],"predecessor-version":[{"id":19875,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/463\/revisions\/19875"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}