Last updated: December 6th, 2022 12:29 PM

Project Imports Scheme for the Imports of Capital Goods for Food Processing Projects

Ministry of Food Processing Industries has launched the Project Imports scheme to import capital goods for food processing projects. As per the Project Imports scheme, the goods imported to the setup of an Industrial Project or substantial expansion of existing industrial projects are subjected to a single classification under the Customs Tariff Act of 1975.  As part of the scheme, capital goods/machinery/equipment for food processing industries/projects can be imported at a concessional rate of 5%. The current article briefs the Project Imports scheme for importing capital goods for food processing projects.

The objective of the Project Imports Scheme

The Project Import Scheme’s primary objective is to simplify the assessment of the import of capital goods and all the related items required for setting up food processing projects by the levy of a flat rate of duty.

Eligible Products under Project Import Scheme

• All food products, including cold storage, cold room (including farm-level pre-cooling)
• Industrial projects for preservation, storage, or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic, and marine produce and meat

Food Projects Import – Governing Law

Application for grant of concessional rate of customs duty under “Project Import” Scheme in respect of imported machinery and equipment for initial setting up of the project/for effecting substantial expansion of the project is governed by the provisions under Project Import Regulation, 1986 as amended from time to time.

Condition to avail Sponsorship for Project Import related to Food Industry

The essential requirements to be fulfilled to be eligible for a concessional rate of duty under the project import scheme are as follows:

• The machinery could be imported at one port or different port at a time or at different times for implementation of the same project subject to the condition that the time gap may not be more than a year
• The recommendation will be as per Project Import Regulations as amended from time to time and subject to all other usual terms and conditions prescribed by the Central Board of Excise and Customs, Department of Revenue, Government of India.

Documents Required

The list of documents and information required for the import of machinery and equipment for the initial setting up of the project / for effecting substantial expansion of the project under the Project Import Scheme is as follows:

• Copy of  Small Scale Industries(SSI) registration for Small Scale Units
• Industrial Entrepreneurial Memorandum for other units
• The plant layout indicating the machines already installed and new machines to be installed, and progress made as of the date of application
• List of capital goods (4 copies) with specification being imported supported by Performa invoice from the machinery supplier

Application Procedure for availing sponsorship for import of project

Organizations desirous of sponsorship for the import of projects relating to the Food Processing industry may apply to the Ministry of Food Processing Industries (MPI). The application, complete in all respect, may be sent to the following address:

• Economic Advisor
• Ministry of Food Processing Industries
• Panchsheel Bhawan
• August Kranti Marg
• New Delhi-110049

Application for grant of Concessional rate of customs duty under ‘Project Import’ scheme in respect of imported machinery and equipment for initial setting up of the project / for effecting substantial expansion is as follows: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2020/10/ProjectImportGuidelines_0-1-3-4.pdf" title="ProjectImportGuidelines_0 (1)-3-4"] Application complete in all respect with documents will be received along with the request for sponsorship for the import of plant/ project specified in the Regulations; the Ministry will consider the issue sponsorship letter for the import of the project.