Zero % EPCG Scheme

[GAURAV MUNOLI]

dear Members,

                      Pls guide me on Zero % EPCG Scheme. Additionaly tell me whether Basic custom duty or CVD and other duties are also exempted.

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Thanks & Regards
CS GAURAV MUNOLI
Mob:9503850319
e-mail id : mgau...@gmail.com






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[CS.Omkar]

Dear Mr. Gaurav,

 

No change in procedure for applying 0% EPCG & 3% EPCG. However, 0% EPCG scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmaceuticals, apparels &  extiles, plastics, handicrafts, chemicals & allied products and leather & leather products subject to few exceptions provided in Handbook of procedure. Export obligation equivalent to 6 times of duty saved on capital goods imported under 0% EPCG scheme, to be fulfilled in 6 years

reckoned from Authorization issue-date (instead of 8 times duty saved and 8 years in 3% EPCG).

 

Regards...Omkar

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[GAURAV MUNOLI]

Whether the export obligation under 0% EPCG Scheme is 3 times in case of Second hand capital Goods. My initial question was whether basic duty is only exempted or total customs duty is saved.

[Sai Adhi]

Under EPCG scheme, Only Basic duty is exempt. Other duties like CVD needs to be paid. However, you can take cenvat credit on CVD.

Thanks
Aditya

[CS.Omkar]

Dear Mr. Gaurav & Mr. Aditya,

 

Under 0% EPCG Scheme, Basic customs duty is compulsorily exempt. However, Importer can specifically claim full exemption for CVD, Additional Duty & also Cesses. If importer wants, no duty is payable under 0% EPCG. Same is the case with 3% EPCG wherein Importer shall pay only 3% of Customs Duty and can opt for full exemption for CVD, Additional Duty & also Cesses.

 

Please refer Customs Notification No. 100/2009 dated 11.09.2009 for 3% EPCG and for 0% EPCG, refer Customs Notifications 101 or 102 or 103 of 2009 dated 11.09.2009. 

 

Regards...omkar
 

[Sai Adhi]

To my knowledge, Under EPCG scheme, only Basic customs duty is exempt.. CVD and others have to be paid and be taken as cenvat credit.

Pls correct me if am wrong..

Thanks
Aditya

[CS.Omkar]

Dear Mr. Aditya,

 

Under EPCG, we can claim exemption for all duties (BCD, CVD, AD & Cess). Please refer notifications mentioned by me, i.e., Customs Notification No. 100/2009 dated 11.09.2009 for 3% EPCG and for 0% EPCG, refer Customs Notifications 101 or 102 or 103 of 2009 dated 11.09.2009.

 

Regards...Omkar