New Delhi, Aug 31 (KNN) The Directorate General of Foreign Trade (DGFT) has permitted the Export Promotion of Capital Goods (EPCG) authorization holders to shift the capital goods imported during the entire export obligation period to their other units.

In a Public Notice, DGFT said, “EPCG authorization holders are permitted to shift the capital goods imported during the entire export obligation period to their other units mentioned in the IEC and RCMC subject to conditions specified.”

The Certificate of Installation of Capital Goods Authorization holder shall produce, within six months from date of completion of import, to the concerned Regional Authorities (RA), a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorization holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s).

The RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a composition fee of Rs.50001, the amended para in the Handbook of Procedures 2015-2020 mentions.

Where the authorization holder opts for independent Chartered Engineer's certificate, he shall send a copy of the certificate to the jurisdictional Customs Authority for intimation/record.

The authorization holder shall be permitted to shift capital goods during the entire export obligation period to other units mentioned in the IEC and RCMC of the authorization holder subject to production of fresh installation certificate to the RA concerned within six months of the shifting."

EPCG scheme allows import of capital goods including spares for pre-production, production and post-production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported  under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date. (KNN Bureau)