6.20

(a) Broad conditions governing debonding of EOU/EPZ/EHTP/STP units are indicated at Appendix 14-J of the Handbook (Vol.1).

(b) To facilitate resource building in educational and medical institutions, electronics units under the EOU/EPZ/EHTP/STP scheme would be allowed by Customs/Central Excise authorities concerned to donate imported/ indigenously procured (bought or taken on loan) computer and computer peripherals, including printer, plotter, scanner, monitor, key-board and storage units without payment of duty, two years after their import/ procurement and use by the units, to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of the Government of India or Government of a State or Union Territory as per Custom/ Central Excise notification issued in this regard.

(c) Debonding of capital goods imported as second hand shall not be allowed under EPCG Scheme. In respect of second hand capital goods which are less than 10 years old on date of import, debonding may be allowed, on payment of applicable duties, after 2 years from the date of import. In addition, where the second hand capital goods are more than 10 years old, debonding may be allowed only against an import licence and payment of applicable duties.

(Above (c) has been amended vide PN No. 17/2002, Dt. 05/06/2002)

[OLD
(c) Debonding of capital goods imported as second hand shall not be allowed under EPCG scheme. Second hand capital goods may be allowed to be disposed off in the DTA on payment of applicable Customs duty after 2 years from date of import.]

Depreciation norms for capital goods

(d) The depreciation norms for capital goods of units, including electronics, would be subject to an overall limit of 90% as notified by the Department of Revenue.

(i) Depreciation for computers and computer peripherals for all types of electronic units would be as follows:

10% for every quarter in the first year;
8% for every quarter in the second year;
7% for every quarter in the third year;

(ii) For capital goods, other than the above, the depreciation rate would be as follows:

4 % for every quarter in the first year;
3 % for every quarter in the second and third year; and
2.5 % for every quarter in the fourth year and thereafter.

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

[OLD
(d) The depreciation norms for capital goods of units, including electronics, would be subject to an overall limit of 90% as notified by the Department of Revenue.

i) Accelerated depreciation for computers and computer peripherals to all units and capital goods of IT hardware units shall be as follows:

10% for every quarter in the first year;
8% for every quarter in the second year;
7% for every quarter in the third year;

ii) For capital goods, other than the above, the depreciation rate would be as follows:

4 % for every quarter in the first year;
3 % for every quarter in the second and third year; and
2.5 % for every quarter in the fourth year and thereafter.]