Notification No. 28/1997, Dated 1st April 1997

EPCG Scheme-capital goods, components or spares- when imported under -

1-4-1997

       In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Centeral Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods as specified in the Table annexed hereto from so much of the 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 of 10% ad valorem and from whole of the additional duty leviable thereon under section of the said Customs Tariff Act, subject to the following conditions, namely

        (1) The goods imported are covered by a valid licence issued und port Promotion Capital Goods (E.P.C.G.) Scheme in terms of Export and Import Policy (hereinafter referred to as the said policy) permitting import on payment of duty of customs at the rate of 10% and the said licence is produced for debit by the proper officer of the customs at the time of clearance:

        Provided that for the import of spare parts, the validity period of the licence shall be deemed to be the period permitted for fulfilment of the export obligation in full.

        (2) The importer executes a bond in such form and for such sum and with such surety or security as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself to fulfil export obligation equivalent to four times the CIF value of the goods imported or for such higher sum as may be fixed by the Licensing Authority within a period of five years from the date of issue of the said licence in the following proportions :-

        Provided that export obligation of a particular year may be set off by the excess exports made in the preceding years.

        (3) The importer produces within thirty days of the expiry of each year from the date of issue of licence from 2nd year or within su period as the Assistant Commissioner of Customs or Deputy  Commissioner of Customs may allow, evidence to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs showing the extent of export obligation fulfillec export obligation of any particular year is not fulfilled in preceding condition, the importer shall within three mon expiry of the said year pay an amount equal to that portiol leviable on the goods but for the exemption contained h bears the same proportion as the unfulfilled portion of the gation bears to the total export obli