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.
