Projects can get benefited under the following schemes:
Project Imports
Initial Setting up of Industrial Plants, Irrigation
Projects, Power Projects, Mining Projects, Oil Exploration Projects and
certain other projects as notified by the government can get the benefits of
Project Imports Scheme. Under the all goods being imported for the purpose
can be assessed under one heading thus obviating any disputes with customs
with regard to their classification.
Concessional Duty : Effective duties for the project 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. 20.941%. As against a normal
total of 23.895% this 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.
Deemed Exports:
Supplies to following projects are considered as deemed
exports and they get the benefits as follows:
Power Projects /Refineries
Power Projects where International Competitive Bidding procedures
have been followed at the IPP or at EPC stage can get the benefit of
Deemed Exports for their domestic procurement. The benefits could be
in the form of Advance Authorization, or Duty drawback on the
inputs. The benefits can be availed by the
Contractor/Sub-contractors or other suppliers. In addition the Mega
Power Projects can get the benefits of excise duty refunds exemption
or refunds also. The benefits can be taken by the suppliers or the
Project owners themselves.
Projects funded by World Bank/IBRD/IDA/IFAD/ADB/JICA/OPEC/SIDA/UN
agencies
Projects funded as above where ICB procedures have been followed
can get the benefit of Deemed Exports for their domestic
procurement.
The benefits could be in the form of Advance Authorization, or Duty
Drawback on the Inputs and Excise Duty Refunds on the outputs. The
benefits can be availed by the Contractor/Sub-contractors or other
suppliers. The benefits can be taken by the suppliers or the Project
owners themselves.
Other purposes like Oil Exploration businesses for which
duty free imports are allowed
Supplies to Projects as above where ICB procedures have been
followed can get the benefit of Deemed Exports for their domestic
procurement.
The benefits could be in the form of Advance Authorization, or Duty
Drawback on the Inputs and Excise Duty Refunds on the outputs. The
benefits can be availed by the Contractor/Sub-contractors or other
suppliers. The benefits can be taken by the suppliers or the Project
owners themselves.
What
We Do
We consult and undertake all the formalities,
documentation, representation with authorities etc., to get you the
approvals under Project Import Schemes, and take care of all other
formalities related to the same.
In case of deemed exports we assist in assessing the feasibility of the
scheme for your purpose, complete planning, costing at the stage of
tendering etc. Then we assist in carrying out all the formalities,
documentation, application preparations, representation and coordination
with the relevant authorities till receipt of relevant Authorizations or
Duty Drawbacks in the hands of the client.
