Project Imports

THE SCHEME: Project Imports are enveloped under chapter 98 of ITC HS Classification and cover all goods, which are being imported for preliminary setting up of a unit or substantial growth of an existing unit. All goods can be reviewed under one customs tariff directing thus preventing any disputes with customs with regard to their cataloging.

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

BENEFITS: 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 CVD + ACVD + CESS is leviable which makes the total duty to approx. 20.941%. As against a normal total of 23.895% is payable on the Capital Goods alone. The scheme thus offers a saving of approx. 3%.

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


Projects need to be permitted by the Ministry of Industry or any other concerned Administrative ministry to be qualified under the scheme. After this they require to be registered up with customs where most of the imports are to take place, along with the import license if relevant. Cash security along with Bank Guarantee/Bond needs to be offered, which gets cashed in after conclusion of imports.

EPCG if availed along with Project Import needs to be taken from the DGFT office.

What A R P A N & Associates LLP Offers

We can help you in full planning, documentation, application preparations, representation and coordination with the Ministry of Industry or the relevant Government Departments till you with no going back get the approval. Upon receipt of approval we can assist in getting the same registered with the concerned customs house. Upon completion of Import we can assist in redemption of the Bonds/BG given at the customs. In addition if EPCG is also envisaged we can assist in getting the same issued from DGFT office.

We also commence the turnkey project of a particular project in association with our associates. This may include logistics, customs clearances, licensing, approvals Duty benefit schemes like EPCG and related requirements. This helps the client in interacting with only one agency, and a much better planning, documentation sequencing and utilization of benefits, and helps in substantial cost reductions.

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