Duty Exemption Scheme
New Capital goods can be imported including computer software systems with a license under the Export Promotion Capital Goods (EPCG) Scheme by, Manufacturer exporters with or without supporting Manufacturer, Vendor, Merchant exporters tied to supporting manufacturer and service providers are eligible to import capital goods.
Importer can Import their Machinery & Equipment without Payment of Custom Duty under 0% EPCG License. The importer has to start Export process using imported Capital Goods & completed Export within maximum Six Years & Export Figure (Export Obligation) must be Six Times of Duty Saved Value.
The capital goods imported by the license holder shall be installed at the factory of the license holder or his supporting manufacturer(s) / vendor(s).
EPCG License
Om Exim Management can assist you for issuance of EPCG License, Installation Certificate and Redemption of EPCG License.
Advance License
The Advance Authorization Scheme is a scheme where the import of inputs will be allowed to be made duty-free (after making normal allowance for wastage) if they are physically incorporated in a product which is going to be exported. An export obligation is usually set as a condition for issuing Advance Authorization.
The inputs imported are exempt from duties like Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty and Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, wherever applicable, subject to certain conditions.
The Advance Authorization issued and the materials imported thereunder will be with actual user condition. This means that the actual user alone may import such goods.
Om Exim Management can assist you for issuance of Advance License and Redemption of Advance License.
DFIA License
Duty exemption schemes were introduced to enable the duty-free import of raw materials or inputs required for the manufacturing of export products, which made life easier for the exporters. DFIA scheme was introduced on 1st May 2006 in and it is similar to the Advance Authorisation Scheme with certain differences
The license issued under the DFIA scheme allows duty-free import of - inputs or raw materials, oil, fuel, catalyst, energy resources, all required to obtain the export products.
DFIA shall be issued only for the products for which standard Input and Output Norms (SION) have been notified. Hence, import entitlement must be limited to the quantity given in SION. DFIA License is transferable; license or inputs imported can be transferred or sold under DFIA Scheme.
Om Exim Management can assist you for issuance of DFIA License and Transfer of Advance License.
Norms Fixation
The Direct General of Foreign Trade (DGFT) has published the Standard Input Output Norms (SION) to specify the required amount of inputs needed to produce a unit of outputs for exporting.
Norms is applicable for numerous products, including electronics, engineering, chemical, handicraft, plastic, leather, and many more. It is also suitable for various food products such as fish and other marine products. Advance licenses are issued based on the inputs and export items given under SION, and the applicant’s exporter needs to ensure that the goods sought for import and import are used in the export product.
The manufacturer, exporter, and merchant-exporter can modify these norms by applying DGFT.