THE CUSTOMS TARIFF ACT 1975 (Notification)
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Notification No. 307/92-Cus., dated 28th December, 1992

Exemption to capital goods imported by specified importer under Export Promotion Capital Goods (EPCG) Scheme.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act/1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description specified in column (2) of the Table annexed hereto when imported into India by an importer specified in column (3) of the said Table from so much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table and the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-

(i) that the goods are covered by a valid licence issued on or before 30th April, 1995 under the Export Promotion Capital Goods (E.P.C.G.) Scheme in terms of para 46 of the Export and Import policy (hereinafter referred to as the Policy) and the said licence is produced for debit at the time of clearance;

(ii) that the said licence specifies, inter alia -

(a) the description, quantity and value of goods allowed to be imported under the said licence,

(b) the description and quantity of the capital goods to be assembled or manufactured;

(iii) that the importer at the time of clearance, shall produce to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, a certificate from the Licensing Authority for having executed a bond under paragraph 45 of the policy; and

(iv) that the importer at the time of clearance of the goods shall make a declaration before the Assistant Commissioner of Customs, in such form as the said Assistant Commissioner may specify, binding himself to pay on demand an amount equal to the duty leviable on such goods but for the exemption contained herein in respect of which the conditions specified in the columns (2) and (3) of the Table are not complied with.

(v) where the licensing authority grants and extension of the period for fulfillment of export obligation or regularisation of shortfall in export obligation not exceeding 5% of such export obligation, in terms of, and subject to satisfaction of such conditions as may be specified in Public Notice of the Government of India in the Ministry of Commerce in this regard, the said period of fulfillment of export obligation may be extended, but shall in no case be extended beyond the 31st March, 2002, and the said short fall in export obligation condoned by the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be

TABLE

S. No.	Description of goods	Description of importer	Rate of duty
1	2	3	4
1	Capital goods in SKD/CKD condition or components of capital goods required for assembly or manufacture of capital goods; and spare parts not exceeding 10% of the value of such capital goods in SKD/ CKD condition or components of capital goods actually imported and required for the maintenance of capital goods so assembled or manufactured.	Importer undertaking an export obligation equivalent to three times the C.I.F. value of the goods specified in column (2) over a period of four years under paragraph 38 of the Policy.	25% ad valorem
2	Capital goods in SKD/CKD condition or components of capital goods required for assembly or manufacture of capital goods; and spare parts not exceeding 10% of the value of such capital goods in SKD/ CKD condition or components of capital goods actually imported and required for the maintenance of capital goods so assembled or manufactured.	Importer undertaking an export obligation equivalent to four times the C.I.F. value of the goods specified in column (2) over a period of five years under paragraph 38 of the Policy.	15% ad valorem

Explanation. - In this notification -

(i) "capital goods" means any plant, machinery, equipment or accessories required by an importer for, -

(a) manufacture or production of goods and includes packaging machinery and equipment, refractories, refrigeration equipments, power generating sets, machine tools, catalysts for initial charge required for, and imported alongwith, capital equipments, equipments and instruments for testing, research and development, quality and pollution control;

(b) use in manufacturing, mining, agriculture, acquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry and sericulture.

(ii) "Export and Import Policy" means the Export and Import Policy 1st April, 1992 - 31st March, 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. l-ITC(PN)/ 92-97, dated the 31st March, 1992, as amended from time to time;

(iii) "Licensing Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act.

2. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12^th August, 2013.

amended by Notifications No. 125/93-Cus., dated 20-5-1993; No. 101/95-Cus., dated 26-5-1995 and No. 108/95-Cus., dated 5-6-1995, Not. 26/2017 - Dated 29-6-2017