Export Promotion Capital Goods Scheme [ EPCG ] Foreign Trade Policy

1. Export Promotion Capital Goods Scheme [ EPCG ]Foreign Trade Policy Hema Desai Financial Controller Bellpepper Animation Pvt. Ltd.

2. EPCG • Allows import of capital goods and spares at concessional rate of duty [@3% of Customs Duty]. • Second hand capital goods without any restriction on age may also be imported under the EPCG scheme. • Subject to — Fulfillment of Export Obligation [EO] equivalent to 8 times the duty saved amount to be completed in 8 years. — Actual User Condition till the Export Obligation is completed — Maintenance of average export. Such average is arithmetic mean of export performance in last 3 years.

4. Following exports can be considered for fulfillment of Export Obligation: • Export obligation shall be fulfilled by export of goods, manufactured / services rendered by the applicant. • Direct and third party exports can be counted towards export obligation. • Export proceeds to be realized in freely convertible currency except for deemed exports. • Export to SEZ Units / Supplies to developers /co-developers, irrespective of currency of realisation would also be counted for discharge of export obligation. • Royalty payments received in freely convertible currency and foreign exchange received for R&D services can be counted for discharge under the EPCG scheme.

5. List of Documents: 1. Application form as per ANF 5A. 2. Hard copy of the online application. 3. Bank Receipt / Demand Draft / EFT details evidencing payment of application fee in terms of Appendix 21B. 4. Self certified copy of Import Export Code (IEC) & (Registration cum Membership Certificate) RCMC. 5. Self certified copy of PAN. 6. Self Certified copy of SSI/IEM/SIA registration. 7. Self certified copy of Export House Status, if any

6. 8. Certificate from a Chartered Engineer in the format given in Appendix 32A certifying: • the end use/nexus of machinery sought for import under EPCG Scheme in the pre production/ production/post production activity of the exported goods/services (explaining the end use of machinery in detail); • and/or the essentiality of spare parts sought for import and its required quantity for existing machinery manufacturing the goods to be exported/ machinery sought for import; and/or • Complete usage of equipments/goods sought for import under the EPCG Scheme for supply of service to overseas customers/ service consumers of any other country in India to earn free foreign exchange/ supply of service in India relating to export paid in free foreign exchange.

7. 9. Manufacturing process flow chart duly certified by Chartered Engineer. 10. Chartered Accountant certificate as per Appendix 26. 11. Self Certified copy of Proforma Invoice for imported capital goods. 12. Catalogue of the Capital Goods. 13. Declarations. 14. Location of the Capital Goods to be installed on letter head. 15. Address of the Jurisdictional Central Excise office. 16. Self addressed envelope for Rs. 30/- stamp addressed to Jurisdiction Central Excise. 17. Brochure/Product catalogue of export item.

8. Other Export Promotion Schemes in case of Physical Exports Export Promotion Scheme Duty Remission Scheme Promotional Measures Duty Exemption Scheme Advance Authorisation including (AA) or Annual Requirement Duty Free Import Authorisation Focus Market Scheme Duty Entitlement Pass Book (DEPB) Duty Drawback

9. Conclusion • Entertainment industry would be a foreign exchange earner of significant value in times to come. • In fact according to FICCI estimates, the foreign exchange earning on account of export of services are likely to exceed export of goods by 2012. • Needless to say Policy initiatives would help the industry to become competitive world wide. • 10% duty credit granted under SFIS scheme ultimately helps modernization of the industry which in turn brings sophistication in services offered.

10. THANK YOU!