6.2

(a) Capital goods, as defined in the paragraph 6.2 of the Policy shall include inter-alia the following and their spares:

(i) DG sets, captive power plants, transformers and accessories and consumables and spares for all above.

(ii) Pollution control equipment.

(iii) Quality assurance equipment.

(iv) Material handling equipment, like fork lifts and overhead cranes.

(v) Un-interrupted Power Supply System (UPS), Special racks for storage, storage systems, modular furniture, computer furniture, anti-static carpet, tele-conference equipment, Servo Control System, Air-conditioning system, panel for electricals.

(vi) Security Systems.

(vii) Tools, jigs, fixtures, gauges, moulds, dyes, instruments and accessories;

(viii) Raw material for making capital goods for use within the unit.

6.2 (b) Raw materials, components, consumables, intermediates, spares and packing materials.

6.2 (bb) Others:

(i) Prototypes and technical samples for existing product(s) and product diversification, development or evaluation.

(ii) Drawings, blue prints, charts, microfilms and technical data;

(iii) Office equipment, including PABX, Fax machines, projection system, computers, laptop, server;

(iv) Spares and consumables, for the above items.

(v) Any other item with the approval of the BOA

Note: The above items may be new or second hand.

(Above Para 6.2 (b) is amended and a new para 6.2 (bb) is added vide PN No. 43/2002-07, Dt. 18/10/20020

[OLD - 6.2 (b) Others:

a. (i) Prototypes and technical samples for existing product(s) and product diversification, development or evaluation.

b. (ii) Drawings, blue prints, charts, microfilms and technical data;

c. (iii) Office equipment, including PABX, Fax machines, projection system, computers, laptop, server;

d. (iv) Spares and consumables, for the above items.

e. (v) Any other item with the approval of the BOA

Note: The above items may be new or second hand.

(Para 6.2 (b) has been substituted vide PN. No. 40/2002-07, Dt. 08/10/2002)

(b) Raw materials, components, consumables, intermediates, spares and packing materials.

(i) (Prototypes and technical samples for existing product(s) and product diversification, development or evaluation.

(ii) Drawings, blue prints, charts, microfilms and technical data;

(iii) Office equipment, including PABX, Fax machines, projection system, Computers, Laptop, server

(iv) Spares and consumables for the above items.

(v) Any other item with the approval of the BOA

Note:

The above items may be new or second hand. ]

Conditions of Import

(c) The import shall be subject to the following conditions:

(i) The goods shall be imported into the EOU/EPZ/EHTP/STP premises. However, agriculture and allied sectors and granite sector units in EOU/EPZ may supply/ transfer the capital goods and the inputs in the farms/fields/quarries with prior intimation to the jurisdictional Customs/ Central Excise authorities, provided the ownership of the goods rests with EOU/EPZ units.

(ii) The normal procedure as prescribed under Customs/Excise rules for EOUs and units in EPZs/EHTP/STP will be followed and appropriate bond executed with Customs/ Excise authorities.

(iii) The goods, except capital goods and spares, shall be utilised by EOU as per Policy within a period of two years or as may be extended by Customs authorities.

(iv) Goods already imported/shipped/arrived before the issue of LOP/ LOI are also eligible for duty free clearance under the EOU/EPZ/EHTP/STP scheme provided customs duty has not been paid and the goods have not been cleared from Customs.

(v) EOU/EPZ units may import plain/studded gold/platinum or silver jewellery for export after repairs/remaking.

(vi) EOU/EPZ units may obtain gold/ silver/ platinum from the nominated agencies on loan basis subject to the condition that the gold/silver/platinum jewellery shall be exported within the specified period from the date of release. This shall not, however, apply to outright purchase of precious metals from nominated agencies or if the same is obtained on loan other than from the nominated agencies

Import of capital goods

(d) In the case of EOU/EPZ/EHTP/STP units, import of capital goods including second hand capital goods, may be permitted in accordance with the list attested by the Development Commissioner concerned

Re-import

(e) The units may be allowed by the Customs/Central Excise authorities concerned to re-import, after repairs abroad, machinery/ equipment exported by them for this specific purpose. Any foreign exchange payment for this purpose will also be allowed.

Fax machines/lap top computers

(f) EOU/EPZ/EHTP/STP may install one fax machine at a place of its choice, outside the approved premises, subject to intimation of its location to the concerned Customs/Central Excise authorities.

(g) EOU/EPZ/EHTP/STP units may, temporarily take out of the bonded premises duty free laptop computers and video projection systems for working upon by authorised employees.

(h) EOU/EPZ/EHTP/STP units may install personal computers not exceeding two in number, imported/procured duty free in their registered/administrative office subject to the guidelines issued by Department of Revenue in this behalf.

(i) For IT and IT enabled services, persons authorized by the software units may access the facility installed in the EOU/EPZ/EHTP/STP unit through communication links.

Utilisation of goods

(j) The unit shall be able to account for the entire quantity of goods imported/procured duty free, by way of exports and sales in DTA or transfer to other EOU/EPZ/ EHTP/ STP/ SEZ units, and balance in stock. However, at no point of time the units shall be required to co-relate every import consignment with each category of homogenous goods exported, transferred to other EOU/ EPZ/EHTP/STP/SEZ units, sales in DTA and balance in stock. In case of doubt the matter shall be referred to BOA for decision.

(In this para (j) has been corrected vide PN No. 16/2002, Dt. 05/06/2002)

[OLD
(j) The unit shall be able to account for the entire quantity of each category of homogenous goods imported/procured duty free, by way of exports, sales in DTA, transfer to other EOU/EPZ/ EHTP/ STP/ SEZ units, and balance in stock. However, at no point of time the units shall be required to co-relate every import consignment with its exports, transfer of other EOU/ EPZ/EHTP/STP/SEZ units, sales in DTA and balance in stock. In case of doubt the matter shall be referred to BOA for decision.]

(k) (i) Export of jewellery at notional rate

The EOU/EPZ units shall be permitted to export the jewellery on the basis of a notional rate certificate to be issued by the nominated agency. This rate will be based on the prevailing Gold/USD rate and the USD/INR rate on the date of the Shipment.

(ii) The exporter shall have the flexibility to fix the price and repay the gold loan within 180 days from the date of export. The price shall be communicated to the nominated agencies who will issue a certificate showing the final confirmation of the rate to the bank negotiating the document, to ensure export proceeds are realized at this rate.

(l) Gem and jewellery EOU/EPZ units may re-export imported goods and export domestically procured goods, including goods generated out of partial processing / manufacture. Besides, supply of unsuitable / broken cut and polished diamonds, precious and semi-precious stones upto 5% of the value of imported or indigenously procured goods to the DTA against the valid GEM/REP as applicable on payment of appropriate duty is also permitted

(This para permits supply of broken diamonds in the DTA)

(Above sub-para (l) has been added vide PN. No. 40/2002-07, Dt. 08/10/2002)