6.3

Eligibility

(a) Under the scheme, manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers are eligible to import capital goods. The capital goods imported by the licence holder shall be installed at the factory of the licence holder or his supporting manufacturer(s)/ vendor(s). However, agricultural exporters and service providers shall be allowed to shift the capital goods, provided advance intimation is given to the concerned Assistant Commissioner of Customs and Excise. Such equipments shall not be sold or leased by the licence holder.

(Above a has been amended vide Ntf.No. 13/(RE-98), Dt. 14/8/98)

(b) If the licence issued under the scheme has actually been utilised for import of a value in excess of or less than 10% of the CIF value of the licence, license shall be deemed to have been enhanced/ reduced by that proportion. Export obligation shall accordingly be enhanced/ reduced as per the actual utilisation of the licence.