EPCG

He introduced a dual exchange rate mechanism in February 1992 and unified exchange rate mechanism in February 1993, effectively engineering a further devaluation of about 30 per cent

The commerce ministry needs to properly monitor the scheme to promote exports, EPCG, as it not only allows duty-free imports of capital goods but also grants a long gestation period for meeting the export obligation, according to a CAG audit report. The scheme allows import of capital goods for pre-production, production, and post-production at nil customs duty but subject to meeting export obligations. The report also said the import of capital goods from ports other than the registered port without adhering to the prescribed procedure involves the risk of importing the goods from multiple ports using the same authorisation that have revenue implications and has the risk of misuse of the bonds. The customs and regional authorities should monitor such cases scrupulously and invoke penal action for non-compliance, CAG said in a statement. It has presented the performance audit report on the scheme in Parliament. "The scheme not only allows duty-free imports of capital goods but als

TNC Rajagopalan answers SME queries related to GST, export and import matters

In my opinion, you have to close the EPCG authorisations taken for the capital goods installed in unit 'A' only, the DTA unit that is being converted into EOU

Para 6.07(a) allows sale in DTA without any limit for EOUs in sectors other than gem and jewellery and services, so long as you achieve positive NFE

TNC Rajagopalan answers SME queries related to GST, export and import matters

The scheme was announced by the DGFT in the Foreign Trade Policy on 31 March and is set to benefit 2,500-3,000 exporters

'You can export goods capable of being manufactured by the use of capital goods imported under the EPCG scheme'

Generally speaking, the new FTP continues with the same old provisions under the major export promotion schemes

There is no stipulation that a free replacement must come only after re-export of the wrong shipment

New policy is in line with government's priority towards moving from an 'incentive-based regime' to a 'remission and entitlement-based regime', thereby making the policy compliant with WTO rules

Apart from that, under the policy, e-commerce as export hubs (ECEH) will be set up through private initiative or in public-private partnership (PPP) mode, in partnership with the states or the Centre

The latest relaxation will be available for hotel, healthcare, and educational sectors, the commerce ministry said

With the amendment to the Foreign Trade Policy, invoicing, payment, and settlement of trade can now take place in Indian rupee

There is no customs duty exemption for inputs used in the manufacture of capital goods in a bonded warehouse, even if they are supplied to an EPCG authorisation holder

If an LC specifies the details of a shipping mark, the documents mentioning the marks should show these details; additional information is acceptable provided it is not in conflict with the LC terms

Under the EPCG scheme, exporters can import capital goods at zero duty against export obligation (EO) of six times the duty saved to be fulfilled in six years

Under the scheme, imports of capital goods are allowed duty free, subject to an export obligation

A licence or duty credit scrip obtained through misrepresentation is voidable but not void till it is cancelled

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 5,000