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: Is it possible to find the provisions related to import of metal scrap to India on Internet?
A: The URL is http://dgft.delhi.nic.in
Q: Are second hand computers allowed to be imported to India?
A: Import of second hand computers including personal computers/ laptops and refurbished / reconditioned spares thereof is restricted. (Not banned)
Second hand computers, laptops and computer peripherals including printer, plotter, scanner, monitor, keyboard and storage units can be imported freely as donations by following category of beneficiaries: |
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 different types of registrations related to trade as an importer /exporter in India?
A: “Manufacturer Importer” or “Trader Importer”
Q: What type of capital goods are allowed to be imported freely in India?
A: All type of second hand Capital Goods and its spares -refurbished or un-refurbished except PCs and Laptops can be imported freely
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. Ravi Energie Inc. being an Agency enlisted in Appendix-5 and as Ravi Energie has Chartered Engineers on role, can certify both.
Q: Is the export “price” for used machines mentioned in the commercial invoice accepted by Customs in India as realistic “value” for Custom clearance?
A: No- as mentioned above, 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. Ravi Energie Inc. being an Agency enlisted in Appendix-5 and as Ravi Energie has Chartered Engineers on panel as professionals and can certify both.
Q: What are provisions related to valuation of plant/ machines in India?
A: Value’s registered with Income Tax Department of Government of India are mandated/authorized to give opinion about “value” for Plant and Machinery. Ravi Energie Inc. has professionals on panel who are “VALUERS” registered with Government of India.
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. Oil well drilling equipments are similar type of equipments certified by Ravi Energie for many multinationals.
Q: What are the provisions for transfer of manufacturing facility from some other country to India?
A: Export to India will be treated as Second Hand Capital Goods. It can be at zero price or at depreciated value, but, the “Value” for the Customs purpose can be higher as mentioned earlier
Q: What are other guide lines/ provisions related to Valuation by Customs?
A: Please see http://www.dov.gov.in/newsite3/cir3.asp and http://www.ahmedabadcustoms.gov.in/st_orders_2008/so_13.Doc
Q: How is “Installation Certification” important?
A: As per Public Notice no-81 / 2011 dated 16th May 2011, for Verification of Manufacturer Exporter status under EPCG scheme – by Jawaharlal Nehru Customs house, Installation Certificate pertaining to earlier imports of capital goods issued by A Chartered Engineer is required . And in such cases Manufacturing Premises is required to be post verified by the Jurisdictional Superintendent of Central Excise: http://www.jawaharcustoms.gov.in/newsite/PublicNotices/pn2011/PN-81-11.htm
It is interesting to go to following links of Chennai Customs to understand the implications of non fulfillment of the provisions related to Installation certifications: http://www.chennaicustoms.gov.in/EPCG/EPCGMain.htm, http://www.chennaicustoms.gov.in/EPCG/, http://www.chennaicustoms.gov.in/EPCG/
Q: Who can provide Installation Certifications?
A: Ravi Energie can arrange for inspections of installations and can provide certifications accordingly for the respective machines |
