The Scheme: Project Imports are covered under chapter 98 of ITC HS Classification and cover all goods, which are being imported for initial setting up of a unit or substantial expansion of an existing unit. All goods can be assessed under one customs tariff heading thus obviating any disputes with customs with regard to their classification.
Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration Projects and certain other projects as notified by the government are covered under the scheme.
Benefits: Assessment under one heading: thus obviating all disputed with the customs regarding tariff classification.
Concessional Duty: Effective duties under Project Imports are lower than the normal and depends on the kind of Project. For Industrial Projects/ Non Mega Power Projects etc., all items covered under the Project Imports now attracts only 5% Basic Customs Duty. In addition CVD + ACVD + CESS is leviable which makes the total duty to approx. 22.762% as against a normal total of 25.852% is payable on the Capital Goods alone. The scheme thus offers a saving of approx. 3%.
EPCG: can also be availed of along with the Project Imports. This simultaneous availment of two schemes can lower the export obligations under EPCG scheme.
There is an elaborate procedure to get the approval from the ministry and customs clearance to be able to get the benefit.
EPCG if availed along with Project Import needs to be taken from the DGFT office..
What We Do:
We can assist you in complete planning, documentation, application preparations, representation and coordination with the Ministry of Industry or the concerned Government Departments till you finally get the approval. Upon receipt of approval we can assist in getting the same registered with the relevant customs house. Upon completion of Import we can assist in redemption of the Bonds/BG given at the customs. In addition if EPCG is also envisaged we can assist in getting the same issued from DGFT office.
We also undertake the turnkey jobs of a particular project in association with our associates. This may include logistics, customs clearances, licensing, approvals Duty benefit schemes like EPCG and related requirements. This helps the client in interacting with only one agency, and a much better planning, documentation sequencing and utilization of benefits, and helps in substantial cost reductions.