EPC (Export Promotion of Capital Goods)

EPCG SCHEME 

DUTY FREE IMPORT OF CAPITAL GOODS Pune

Introduction

EPCG is a term used in India under exports and imports. EPCG means, Export Promotion Capital Goods. EPCG is one of the schemes provided by government of India to importers and exporters to promote exports. In simple and easy language, EPCG is a scheme related to machinery, machinery parts and similar goods.

Benefit of Scheme –

Under Export Promotion Capital Goods (EPCG) scheme, a license holder can import capital goods such as plant, machinery, equipment, components and spare parts of the machinery at zero rate of customs duty. General import duty is approx. 25 % to 27 % however in case of EPCG license holder not required pay duty.

Who Can Apply?

A manufacturer exporter can apply under scheme.

Obligation Under Scheme –

The duty free import by an exporter has to be paid back in the form of an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date. This means that if an exporter imports a tool making machine and saves an import duty of Rs. 100, he will have make the tools and export tools worth minimum Rs. 600 within 6 years.

Salient Features

Ø  Authorization holders will have export obligation of 6 times the duty saved amount. The export obligation has to be completed in a period of 6 years.

Ø  The period for import under the Scheme would be 18 months.

Ø  Export obligation discharge by export of alternate products as well as accounting of exports of group companies will not be allowed.

Ø  On non full fill meant of  export obligation license holder required to pay the import duty amount
along with interest.

Ø  For default in fulfilling the export  under the EPCG scheme, license holder  have to pay the duty saved proportionate to the unfulfilled export obligation plus interest rate applicable from the date of clearance of the goods.

Procedure for Obtaining EPCG License

Ø  Certain list documents required

Ø  Making a brief application to be made in ANF

Ø  Payment of Applicable Government fees

Ø  Putting up file to Director General of Foreign Trade

Ø  Obtaining License under EPCG

By CA Amit Bhutada

Cell – 80555 66789

 Excise Registration in Pune 

Who is Required to Take Registration ?
In accordance with Rule 9 of the said Rules and Notifications issued under rules 18 and 19 of the said Rules, as the case may be, the following category of persons are required to register with jurisdictional Central Excise Officer in the Range office having jurisdiction over his place of business/factory:

1. Every manufacturer of excisable goods (including Central/State Government undertakings or undertakings owned or controlled by autonomous corporations) on which excise duty is leviable .
2. Persons who desire to issue CENVATABLE invoices under the provisions of the CENVAT Credit Rules, 2001.
3. Persons holding private warehouses.
4. Persons who obtain excisable goods for availing end-use based exemption notification.
5. Exporters manufacturing or processing export goods by using duty paid inputs and intending to claim rebate of such duty or by using inputs received without payment of duty and exporting the finished export goods.

Penalty for non obtaining Excise Registration ?

In case a manufacturer or producer liable to pay Central Excise does not obtain Central Excise Registration, a  penalty of upto Rs.10,000 and/or imprisonment of upto 7 years can be imposed. Therefore, it is important for  Entrepreneurs involved in manufacturing or production to know about their Central Excise liability and maintain  compliance.

Documents Required for Excise Registration - 

1 Company's PAN Card

2 MOA & AOA

3 Incorporation Certificate

4 Lay out of Factory

5 Address proof of factory

6 VAT, Service tax , CST , IEC copy ( if any)

7 Amount of Investment

8 List of Inputs ( with Tariff code )

9 List of finished goods ( with Tariff code )

10 Details of Directors ( PAN & Address proof )

11 Bank Details ( Name , A/c No.)

12 Cancelled Cheque

Period Required to obtain Registration Number 

2-3 working days time required to get excise registration number after clearance of documents.

Contact Us for Excise Registration , Compliance in PUNE

CA Amit Bhutada

Cell - 80555 66789

email- amitbhutada@outlook.com