POLICY CIR NO. 61/2008, DT. 13/02/2009

Import of Construction Equipment under EPCG Scheme

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.

2. The matter has been examined and it is clarified 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.

3. This issues with the approval of Director General of Foreign Trade.

(Akash Taneja)
Joint Director General of Foreign Trade

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