The Hindu Business Line : Used photocopiers, ACs, gensets can't be imported under EPCG

SECOND-hand photocopier machines, air-conditioners and diesel generating sets cannot be imported under the export promotion capital goods (EPCG) scheme even if such equipment are less than 10 years old, the Directorate General of Foreign Trade has ruled.

The directorate's stand, which comes after more than a month when similar decision had been taken in the case of second-hand personal computers and laptops, is seen as a body blow to those service providers, who have been keen to use the export promotion route.

Imports under the scheme attract a concessional customs duty of five per cent even though an export obligation equivalent to eight times the duty savings has to be undertaken under the scheme and fulfilled within a specified period.

The directorate, in a circular, held that second-hand photocopier machines, air-conditioners and diesel generating sets are covered under the definition of `second-hand goods' and that their import is governed by the provisions of Para 2.17 of Exim Policy 2002-07. Para 2.17 stipulates that all second-hand goods would be restricted for imports and may be imported only in accordance with the provisions of the policy, Hand Book of procedures (Vol I), Public Notice or a licence/certificate/permission issued in this behalf.

Trade experts say that the directorate might have taken this stand after concluding that these items are not covered under the definition of "capital goods" in the Exim Policy.

It has, however, made it clear that import of new personal computers/laptops, photocopier machines, air-conditioners and diesel generating sets may be permitted under the export scheme so long as these items are required for manufacturing of goods or rendering services.

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Used photocopiers, ACs, gensets can't be imported under EPCG