Project Imports
THE SCHEME:
THE SCHEME: Project Imports are enveloped under chapter 98 of ITC HS Classification
and cover all goods, which are being imported for preliminary setting up of a unit or
substantial growth of an existing unit. All goods can be reviewed under one customs tariff
directing thus preventing any disputes with customs with regard to their cataloging.
Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration
Projects and some other projects as notified by the government are enclosed under the
scheme.
BENEFITS: Assessment under one heading: thus obviating all disputed with the customs
regarding tariff classification.
CONCESSIONAL DUTY : Effective duties under Project Imports are lower than the normal
and depends on the kind of Project. For Industrial Projects/ Non Mega Power Projects etc.,
all items covered under the Project Imports now attracts only 5% Basic Customs Duty. In
addition CVD + ACVD + CESS is leviable which makes the total duty to approx. 20.941%. As
against a normal total of 23.895% is payable on the Capital Goods alone. The scheme thus
offers a saving of approx. 3%.
EPCG: can also be availed of along with the Project Imports. This simultaneous
availment of two schemes can lower the export obligations under EPCG scheme.
THE PROCEDURE
Projects need to be permitted by the Ministry of Industry or any other concerned
Administrative ministry to be qualified under the scheme. After this they require to be
registered up with customs where most of the imports are to take place, along with the
import license if relevant. Cash security along with Bank Guarantee/Bond needs to be
offered, which gets cashed in after conclusion of imports.
EPCG if availed along with Project Import needs to be taken from the DGFT office.
What Rajput Jain & Associates Offers
We can help you in full planning, documentation, application preparations, representation and
coordination with the Ministry of Industry or the relevant Government Departments till you
with no going back get the approval. Upon receipt of approval we can assist in getting the
same registered with the concerned customs house. Upon completion of Import we can assist in
redemption of the Bonds/BG given at the customs. In addition if EPCG is also envisaged we
can assist in getting the same issued from DGFT office.
We also commence the turnkey project of a particular project in association with our
associates. This may include logistics, customs clearances, licensing, approvals Duty
benefit schemes like EPCG and related requirements. This helps the client in interacting
with only one agency, and a much better planning, documentation sequencing and utilization
of benefits, and helps in substantial cost reductions.