Capital goods imported under EPCG scheme can be shifted to another unit

Q. We have installed capital goods imported under the EPCG scheme in our Unit-1, the address of which is mentioned in the authorisation and bill of entry. Now, we want to shift it to our Unit-2 in a different location. Can we do it?

Yes. As per Para 5.04 (b) of HBP, “Authorisation holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorisation holder or his supporting manufacturer(s). The RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a composition fee of Rs 5,000. Where the authorisation holder opts for independent Chartered Engineer’s certificate, he shall send a copy of the certificate to the jurisdictional Customs Authority for intimation/record. The authorisation holder shall be permitted to shift capital goods during this period to other units mentioned in the IEC and RCMC of the authorisation holder subject to production of fresh installation certificate.”

Q. I refer to your reply regarding bank charges in SME Chatroom (Business Standard, August 14, 2018). In case there is no prior notice or agreement for levying penal charges, is it still open to the bank to debit the customer's account with penal charges? What can we do if the charges debited are unacceptably high?

When you give your bill for negotiation or collection to a bank, it is deemed that you have accepted the charges that banks would levy, as customary or as per their standard rates, which may include penal charges in certain situations. You can ask the bank to clarify the charges they have debited and if you find them unacceptable, you can take it up with the bank's higher authorities or ombudsman, or move the consumer courts. 

Q. We export to some foreign buyers on a C&F basis. We understand that in a C&F contract, we are required to pay only the ocean freight and not the terminal handling charges that the shipping companies charge and show in the bill of lading. Can we claim such charges from the buyers?

First, please avoid the usage “C&F”. The correct usage is CFR. Now, in a CFR contract, the seller delivers by placing the goods on board the vessel at the named port of shipment or by procuring the goods so delivered on the agreed date or within the agreed period, in the manner customary at the port. The seller must bear all costs relating to the goods till they have been so delivered, the costs of loading, freight up to destination including any charges for unloading that are for seller’s account under the contract of carriage, and the cost of obtaining the transport document and sending it to the buyer. So, as a seller, you cannot claim the terminal handling charges from the buyer.