Project Imports

Project Imports are covered under chapter 98 of ITC HS Classification and cover all goods, which are being imported for initial setting up of a unit/factory or substantial expansion of an existing unit. All goods can be assessed under one customs tariff heading thus obviating any disputes with customs with regard to their classification.

Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration Projects and certain other projects as notified by the government are covered under the scheme.

Benefits of Import - Under Project Import Scheme

  • Assessment under one heading

    Assessment under one heading: thus obviating all disputed with the customs regarding tariff classification.

  • Concessional Duty

    Effective duties under Project Imports are lower than the normal and depends on the kind of Project. For Industrial Projects/ Non Mega Power Projects etc., all items covered under the Project Imports now attracts only 5% Basic Customs Duty. In addition, IGST is leviable which makes the total duty to approx. 24.49 % as against a normal total of 27.735% payable on the Capital Goods alone. The scheme thus offers a saving of approx. 3%. Some material attracts 10% BCD so the saving works out approx. 6.5%

Further, EPCG can also be availed of along with Project Imports. This simultaneous availment of two schemes can lower the export obligations under EPCG scheme.

Procedure

There is an elaborate procedure to get approval from the ministry and customs clearance to be able to get the benefit. EPCG if availed along with Project Import needs to be taken from the DGFTR office.

Role of Andees Team

It is very important to note in the above process, that foresight and experience can play a big role in not only getting permission from the relevant ministry but also registration and monitoring the documentation at each point. Further, in case of delay in projects, timely actions can save a lot of problems and liability in future. Finally, proper documentation and representation at the time of redemption can ensure a smoother and optimum closure, also other schemes, compliances etc.

Andees has been assisting clients and has extensive experience for the whole process of managing the imports under Project Imports and closure of the same for the last more than 15 years. Sound knowledge of Policy & Procedures along with a very qualified and experienced team, Andees has handled lots of complicated matters related to Project Import, saving crores for clients that are MNCs, Indian Corporates, or PSUs. While proper planning during the entire life cycle has helped smooth operations, several complicated matters even at the last stage have been saved by the Andees team from substantial liabilities.

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