Import of Construction Equipment under EPCG Scheme- DGFT clarifies
Representations have been received from Regional Authorities and individual firms seeking clarification on import of Construction Equipment viz. Crane & Mobile Cranes etc under Export Promotion Capital Goods (EPCG) Scheme.
The DGFT clarifies that import of construction equipment is not allowed only for construction activities for building factory/project by the EPCG authorization applicant. The import of construction equipments shall only be permitted to Service providers subject to following conditions:-
i) Such equipments are used to provide Services as mentioned in Appendix X of Handbook of Procedures-vol-1; and
ii) Payments for the services rendered through construction equipments are received in Free Foreign Exchange or in Indian Rupees which are otherwise considered as having being paid for in free foreign exchange by RBI, as per Sub Para (iv) of Para 9.53 of Foreign Trade Policy.
DGFT Circular No. 61 (RE-2008/2004-09) Dated: February 13, 2009