The Hindu Business Line : `Used PCs, laptops cannot be imported under EPCG scheme'

SECOND-HAND personal computers or laptops cannot be imported under the export promotion capital goods (EPCG) scheme of the Exim Policy, according to the Directorate-General of Foreign Trade (DGFT).

This stand of the DGFT is seen as a body blow to service providers, who were keen to use the EPCG route to import second-hand PCs and laptops.

Imports under the EPCG scheme attracts 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.

In a circular, the DGFT has now clarified that second-hand personal computers and laptops are not covered under the definition of `capital goods' in the Exim Policy.

It has, however, held that such items are covered under the definition of `second-hand goods' and that Para 2.17 of Exim Policy 2002-07 would govern their imports.

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.

On the other hand, the Exim procedures specify that imports of second-hand capital goods not more than 10 years old would be allowed freely.

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`Used PCs, laptops cannot be imported under EPCG scheme'