Q: Where can one find out provisions related to used and second hand machines or plants i.e. Second Hand Capital Goods for export to India?
A: It is advised to refer the “Hand Book of Procedure Vol-1” for Imports & Exports- published by Directorate General of Foreign Trade, Ministry of Commerce, Government of India. It is advised to refer the amendments to it published as Public Notices/ Notifications and Circulars. Section 2.33 in HBP lists majority of provisions for second hand capital goods.
Q: What is STPI?
A: Software Technology Parks of India (STPI), is a society set up by the Department of Communication & Information Technology, Government Of India in 1991, with the objective of encouraging, promoting and boosting the Software Exports from India. Equipments including Computers are allowed for duty free imports subject to provisions in Acts for STPI Registered units in India.
Q: What is SEZ
A: SEZ: “Special Economic Zone”-a scheme developed by Govt. of India especially for exports/ trade
Q: What is EOU
A: It is “Export Oriented Unit” in India. 100% EOU have many benefits/ incentives in India
Q: What is meant by “EPCG”
A: It is “Export Promotion Capital Goods”. It is a scheme by Directorate General of Foreign Trade in India to assist Industries importing second hand or used machines as capital equipments for production of goods manufactured using these machines for promotion of exports. Upon commitment to fulfill export obligation, the relaxation in custom duty is given as declared from time to time.
Q: What are the restrictions about “condition” of the machines or spares allowed for import?
A: The machines shall have at least 80% residual life of original machine.
Q: Who certifies the balance life of the machine to be exported to India?
A: A Chartered Engineer has to certify the balance life. Again the Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 5 of the HBP v1, for certifying residual life as well as valuation / purchase price of capital good.
Q : What are the provisions related to temporary imports of Capital Goods?
A: It is possible to import with prior permissions of related Government Departments and subject to terms and conditions thereof