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
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. 23.416% as against a
normal total of 26.428% is payable on the Capital Goods alone. The scheme
thus offers a saving of approx. 3.012%.
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.
Projects need to be approved by the Ministry of Industry
or any other concerned Administrative ministry to be eligible under the
scheme. After this they need to be registered with customs where most of the
imports are to take place, along with the import license if applicable. Cash
security along with Bank Guarantee/Bond needs to be submitted, which gets
redeemed after completion of imports.
EPCG if availed along with Project Import needs to be taken from the DGFT
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
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.