Certification must for old machinery imports
New Delhi: While permitting import of second-hand machinery older than 10 years with a licence under the current export and import policy, the government will insist on obtaining a chartered engineer’s certificate by intending manufactu-rers/exporters besides looking into their track record. However, where machinery is up to 10-years old, its import is allowed without a licence.

The government had been receiving representations that second-hand capital goods might be allowed to be imported based on a residual life of more than 10 years instead of relying on specific age to enable small-scale units to take full advantage of it, officials add. They explain that the government has taken a deliberate decision not to permit second-hand items other than capital goods. This is because of the long time taken by indigenous manufacturers for making deliveries of machinery required by exporters. Moreover, new machinery items are expensive and there is also a waiting period. The move to allow imports of second-hand capital goods is to be viewed against this background, officials point out. They also say the commerce ministry is taking up with the revenue department the issue of transfer of advance licences under the exim policy as demanded by exporters. Besides, the government is looking into certain other demands raised by exporters such as the high transaction cost on export of farm products by seeking data to enable the customs department to fix brand rates of drawback. According to the exporters, farm products undergo several steps before shipment. This process involves a large amount of excisable inputs such as diesel, fertilisers etc that go into production.
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