- An Advance Authorization is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage) subject to actual user condition. Such Authorizations are exempted from payment of basic customs duty, additional customs duty, anti dumping duty and safeguard duty, if any
- Advance Authorization can also be issued for supplies with in India that are categorized as Deemed Exports. Purposes like supplies to Mega Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.
- Advance Authorizations are issued with an obligation to export the quantity and value of goods mentioned therein in a fixed period of 18 months. Before imports customs ask for a bond or a bank guarantee towards security for duty saved, till export obligation is fulfilled.
- Advance Authorizations or materials imported against it can-not be transferred even after completion of Export Obligation.
- Advance Authorisations are also available for Annual requirement under SION as well as on SELF-DECLARATION basis.
Duty Free Import Authorisation (DFIA)
- DFIA is issued to a merchant-exporter or manufacturer-exporter for duty free import of inputs used in the manufacture of goods without payment of basic customs duty, additional customs duty/excise duty, antidumping duty and safeguard duty if any. DFIA is issued on minimum value addition of 20%, and only for export of products covered under the SION. DFIA and or the material(s) imported against it are freely transferable after completion of Export Obligation. Exemption from payment of Anti Dumping Duty and Safeguard Duty will not be available after endorsement of transferability of such authorizations.
An advantageous scheme for procurement of Capital Goods
- The EPCG scheme allows import of new capital goods (including CKD/SKD thereof as well as computer software systems and spares, jigs, fixtures, dies and moulds) at NIL Customs duty as against the normal total of 25.852%, thus providing a total duty saved of import value. This is subject to an Export Obligation (EO) equivalent to 6 times of duty saved, to be fulfilled over a period of 6 years reckoned from the date of issuance of license. For large projects, units in North East, SSI etc. there are more relaxed norms of EO.
- The scheme covers manufacturer exporters with or without supporting manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and Service Providers.
- Actual user conditions: Import of capital goods are subject to Actual User condition till the export obligation is completed.
- Export obligation: The export obligation needs to be fulfilled by the export of goods capable of being manufactured or produced by the use of the capital goods imported under the scheme. Deemed Exports like supplies to Mega Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc. can also be utilized to fulfill the EO
- Indigenous Sourcing: A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying capital goods to EPCG license holders shall be eligible for refund of Excise Duty paid by him. In addition the indigenous supplier can import his own raw material duty free and other benefits which can be discussed. For Manufacturers
- The scheme is quite beneficial to Manufacturer exporters as they can import their CG at a substantial discount. Especially for those manufacturers whose final product is not excisable or is exempt from excise duty (like those in Uttaranchal) since they cannot take the CENVAT credit of the CVD paid on imports and Excise Duty paid in Domestic markets. Merchant Exporters
- tied with the supporting manufacturers can also utilize the scheme for concessional duty import of Capital Goods to be installed at the supporting manufacturers. For Projects
- EPCG can be taken for the projects where exports of goods or services can be envisaged by the use of the project or alternative products. EPCG can be taken along with Project Import scheme in case of new Projects. For Service Provider
- Various service providers/exporters can take EPCG route to reduce their Capital Cost. Service Providers like Hotels, Tour Operators, Taxi Operators, Construction Companies, Logistics companies can utilize the scheme to import/procure from domestic market, their capital goods at a substantially reduced costs. The EO can be fulfilled by Forex Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc. For Others
- Certain other sectors like Retail Sector in the country, Port Projects etc. can also utilize EPCG scheme to their advantage.
- The scheme incentivizes exports to Certain Latin American, African ,CIS Countries. It offers 3%/4%/5% of the previous years exports in the form of duty credit script, which is transferable.
- The scheme incentivises exports of certain items of rural and semi urban origin. It offers 2%/4%/5% of the previous years exports in the form of duty credit script, which istransferable.
- For the export of certain Toys and Sports Goods from 1.4.08, a script of up-to 6.25% value is available. For High value added products script of upto 2.5% is available.
- The script is transferable to other importers.
- Merchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zones (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio- Technology Parks (BTPs) shall be eligible for status. 2. Categories:
- Applicant shall be categorized depending on total FOB (FOR - for deemed exports) export performance during current plus previous three years (taken together) upon exceeding limit below:
- 1. Authorization and Customs Clearances for both imports and exports on self-declaration basis;
- 2. Fixation of Input-Output norms on priority within 60 days;
- 3. Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
- 4. 100% retention of foreign exchange in EEFC account;
- 5. Exemption from furnishing of BG in Schemes under FTP;
- 6. SEHs and above shall be permitted to establish Export Warehouses, as per DoR guidelines.
- 7. For status holders, a decision on conferring of ACP Status shall be communicated by Customs within 30 days from receipt of application with Customs.
- 8. As an option, for Premier Trading House (PTH), the average level of exports under EPCG Scheme shall be the arithmetic mean of export performance in last 5 years, instead of 3 years.
- 9. Status Holders of specified sectors shall be eligible for Status Holder Incentive Scrip under Para 3.16 of FTP.
- 10. Status Holders of Agri. Sector (Chapter 1 to 24) shall be eligible for Agri. Infrastructure Incentive Scrip under VKGUY – Para 3.13.4 of FTP.
|Status Category||Export Performance FOB / FOR Value|
|Export House (EH)||Rs. 20 Crores|
|Star Export House (SEH)||Rs. 100 Crores|
|Trading House (TH)||Rs. 500 Crores|
|Star Trading House (STH)||Rs. 2500 Crores|
|Premier Trading House (PTH)||Rs. 7500 Crores|
- With an objective to promote investment in upgradation of technology of some listed / specified sectors, Status Holders shall be entitled to incentive scrip @1% of FOB value of exports made during 2009-10, 2010-11 and during 2011-12, of these specified sectors, in the form of duty credit.
- The Status Holders of the additional listed sectors shall be eligible for this Status Holders Incentive Scrip on exports made during 2010-11 and 2011-12.
- This shall be over and above any duty credit scrip claimed/availed under this chapter. 2. Transferability & Utilisation:
- The Status Holders Incentive Scrip shall be with Actual User Condition and shall be used for imports of capital goods (as defined in FTP) relating to the specified sectors.
(IEIS) Incremental Export Incentive Scheme
- A new scheme namely Incremental Export Incentivisation Scheme of 2% of incremental FOB for the exports made during 2013-14 vis a vis previous year 12-13. This scheme is available for exports made to USA, EU and Asia, and 53 other countries in Latin America and Africa.
- All the above except SFIS can also be availed by EOU/EHTP/BTP who are not availing of direct tax benefits/exemptions.
- IMPORTER EXPORTER CODE ( in short IEC ) is a ten digit number granted by Directorate General of Foreign Trade under Ministry of Commerce and Industry, to any bonafide person/ company for carrying out import/export. We assist you in Issue of I.E.C. in very efficient manner.
- We undertake the work of Registration from different Export Promotion Councils and also provide Registrations of different Import Licenses from Customs.
- Objective is to accelerate growth in export of services so as to create a powerful and unique ‘Served From India’ brand, instantly recognized and respected world over. 2. Eligibility:
- All Indian Service Providers, of services listed in Appendix 10 of HBPv1, who have freeforeign exchange earning of at least
Rs. 10 Lakhs in preceding financial year / current financial year shall qualify for Duty Credit Scrip.
- For Individual Indian Service Providers, minimum free foreign exchange earnings would be Rs 5 Lakhs. 3. Entitlement:
- All Service Providers shall be entitled to Duty Credit Scrip equivalent to 10% of free foreign exchange earned during current financial year. 4. Transferability & Utilisation:
- Duty Credit scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC (HS). Imports shall relate to any service sector business of applicant.
- Entitlement / goods (imported / procured) shall be non transferable (except within group company and managed hotels) and be subject to Actual User condition.
- Fixation/modification of Standard Input Output Norms (SION).
- Assistance in Sale & Purchase of DEPB/VKUY/FMS/FPS licenses.
- Verification / Registration of issued DEPB/VKUY licence from the different ports.
- TIN NO Registration & Sales Tax Returns
- TAN No. Registration
- Company Formation
- All filings of ROC
- Preparation of Final Accounts & Fling of Income Tax
- Service Tax Registration
- Excise Registration