India eases compliance of capital goods imports for export promotion

As per the notification, an authorisation holder, i.e., the importing company or entity, is required to present a certificate from customs authorities or an independent chartered engineer confirming the installation of capital goods at the factory within six months. Previously, importers could request a one-time extension of 12 months, but the government has now extended this period to three years. The extension provisions remain subject to certain procedures.

Importing companies will no longer need to produce an installation certificate for the import of spares. Previously, this certificate was required within three years. Additionally, the composition fee structure has been liberalised for extending export obligations.

The DGFT's notification states that these amendments, aimed at reducing compliance burdens and enhancing ease of doing business, specifically address provisions in Chapter 5 related to EPCG scheme in the Handbook of Procedures 2023, applicable to EPCG authorisations issued under the Foreign Trade Policy.

ALCHEMPro News Desk (KUL)