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EPCG Licence- Export promotion capital good scheme

The applicant may apply for EPCG licence along with a certificate from the independent chartered engineer on the proforma annexed to ‘Aayaat Niryaat Form’ certifying the end use of capital goods sought for import for its use at pre production, production or post production stage for the product undertaken for export obligation.

The Licensing Authority concerned shall, on the basis of the nexus certificate from an Independent Chartered Engineer (CEC) submitted by the applicant in Appendix 32A, issue the EPCG licence and thereafter forward a copy of the EPCG licence to the concerned Jurisdictional Central Excise Authority.

Installation Certificates

At the Time of final redemption of export obligation licence holder shall submit certificate from the Independent Chartered Engineer Confirming the use of spares so imported in the installed capital goods on the basis of stock &  consumption register maintained by licence holder.

Import into SEZ

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Chartered Engineer has to issue certificate in the following manner.

“This is to certify that list of items countersigned in the following annexure are required for M/s ( name of applicants ) for authorised operation approved by B.O.A vide letter no. dated”.

Chartered Engineer's (CE Certification) for Second Hand Plants, Machinery and Spares Exported to India :

It is mandatory to have CE Certification for custom’s clearance for second hand plant & machinery being imported to India. The certification relates to state of the goods, balance future life, contents, value for assessment of customs.

Pre-Shipment Inspection

As per WTO agreement “Agreement shall apply to all pre-Shipment inspection activities carried out on the territory of Members, whether such activities are contracted or mandated by the government, or any government body, of a Member”. 

Pre-shipment inspection activities are all activities relating to the verification of the quality, the quantity, the price, including currency exchange rate and financial terms, and/or the customs classification of goods to be exported to the territory of the user Member.

For export to countries with import certification schemes, Pre-shipment inspection is a necessary step to receive an import certificate for the shipment. Without this certificate, the shipment will not be able to clear customs in the country of destination.

Pre-shipment inspection offers importers the certainty that the goods arriving at their place of destination are in conformity to required specifications. These can be customer’s  own requirements or legal demands or may be demanded by the Bankers.

Advance Licence

An Advance Licence is granted for the import of inputs without payment of basic customs duty. Such licences are issued in accordance with the policy and procedure in force on the date of issue of the licence and is subject to the fulfilment of a time-bound export obligation, and value addition as maybe specified. Advance licences maybe either value based or quantity based. 

Chartered Engineer has to certify that inputs being imported without payment of basic customs duty is in order .

Export Of Defective Equipments Which Cannot Be Repaired In India.

Chartered Engineer has to certify that part of an imported machine cannot be repaired in India and has to be sent back to the manufacturer’s or supplier’s works for repairs and re-import .

Central Government exempts capital goods, professional equipments, office furniture and consumables related to service sector business and food items from the whole of duty of excise and additional duty of excise subject to certificate from independent Chartered  Engineer confirming installation and use of the goods in the factory or premises within 6 months from date of clearance .
Managed Hotel Means Hotels Managed By A Three Star Or Above Hotel/hotel Chain Under An Operating Management Contract For A Duration Of At Least Three Years Between Operating Hotel/hotel Chain And Hotel Being Managed. The Management Contract Must Necessarily Cover The Entire Gamut Of Operations/management Of Managed Hotel.

The  chartered  engineer has to certify the consumption of various materials  shown in DBK-1  statement after examining it carefully that items are actually required and are being consumed in the factory of production for manufacture of export product. He has to further certify that imported materials are being actually used in the manufacture of the export product and are not being substituted by indigenous materials . The wastage claimed have to be certified as wastages should be reasonable and comparable to the general norms for the industry.

The amortisation refers to expensing the acquisition cost of tools minus residual  value in a systematic manner over their estimated  useful economic  lives so as to reflect their expiration , obsolescence   or other decline in value as a result of use with the passage of time.

The certification by chartered engineer is required for computation of installed capacity of new and old plants.

The Certification By Chartered Engineer Is Required For Computation Of Installed Capacity Of New And Old Plants.

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