Certification confirming the ‘End-use’ of imported equipment.

Imported goods, found to be defective after import/not giving desired results after installation/requiring upgradation or calibration, at times cannot be repaired/upgraded/replaced in India due to lack of manufacturer’s service facilities and are thus required to be exported for replacement/repair/upgradation to the manufacturer’s/repairer’s facility and re-imported on a returnable basis. CE Certification is required to establish the need for export and to establish their identity to prevent the levy of duplicate import duty on the goods.

CE Certificate providing a valuation of Old and Used Capital goods for the purpose of Export with comments on their Condition, Residual life, and conformation w.r.t the Guidelines on Hazardous/E-waste issued by MOEFF & CC, Govt. of India, is required by Customs for evaluation and subsequent clearance for their export.

EPCG scheme allows exemption of duty on import of Capital Good/(s) required for manufacturing (Goods which are to be exported). Capital Goods can include equipment’s, spare parts, tools, jigs, fixtures, dies and moulds. The applicant (Exporter) may apply for an EPCG license along with a CE certificate on the proforma certifying the end use of capital goods sought for import for its use at the pre-production, production or post-production stage for the product undertaken for export obligation.

EPCG scheme allows exemption of duty on import of Capital Good/(s) required for manufacturing (Goods which are to be exported). Capital Goods can include equipment, spare parts, tools, jigs, fixtures, dies and moulds. At the time of final redemption of export obligation license holder shall submit a CE certificate confirming the installation and use of the goods in the importer's factory or premises within Six months from the date of imports on the basis of stock & consumption register maintained by the license holder.

Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Chartered Engineer has to issue a certificate in the prescribed format.

An advance license is granted for the import of inputs without payment of basic customs duty. Such licenses are issued in accordance with the policy and procedure in force on the date of issue of the license and is subject to the fulfilment of a time-bound export obligation, and value addition as maybe specified. Advance licenses maybe either value based or quantity based. Chartered Engineer has to validate and certify the import of inputs without payment of basic customs duty.

Under Advance Authorization scheme duty free import of input raw materials required for export production is permitted. Raw material quantity can be procured as per ratio of Input-Output Norms w.r.t to quantity of finished Capital Good(s) to be manufactured for being exported. Due to constant innovation/ product development, Standard Input-Output norms of such goods may not be present in published Handbook, but Exporters are still eligible for the duty-free import of inputs used in the manufacture of such goods. Certification for fixation of SION Norms for such new products in DGFT and certifying raw material requirements and wastage for manufacturing such products is provided.

Duty Drawback is claim of refund of excise and custom duties charged on imported material and /or excisable material used in the manufacture of goods to be exported. Certification of consumption of various materials shown in DBK-1 statement after careful examination of the requirement and the consumption details of the imported items used for production/ manufacture of export product. Further, wastages as claimed are also to be certified subject to they being reasonable and adhering to the industry norms.

Investment in plant and machinery towards obtaining status of 100% Export Oriented Unit by an industrial unit.

Amortisation is defined as writing off of an intangible asset investment over the projected life of assets, which may be tools/ dies/ moulds required in the manufacture of parts. The Amortisation refers to expensing the acquisition cost of tools minus residual value in a systematic manner over the estimated useful economic lives so as to reflect their expiration, obsolescence or other decline in values as a result of use with the passage of time. Reputed automobile / consumer durables companies outsource production of parts to vendors and supply them tools/ dies/ moulds. However, they need Amortisation cost of tooling supplied by them as tools have limited useful lives after which they are discarded as scrap.

Certifying whether imported equipment/ machine can be considered as e-waste or not. Based on the certificate, MOEF & CC issues letter to the importer thus enabling them to get the imported items cleared from the customs.

Ministry of Company Affairs, MCA, has defined norms for determining depreciation of assets. The Companies Act 2013 emphasizes on the concept of USEFUL LIFE of assets. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of similar units are expected to be obtained by the use of that asset in production by the entity. The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset shall not ordinarily be different from the useful life specified in Part C of Schedule-II. Where a company adopts a useful life different from what is specified in Part C or uses a residual value different from the limit as specified, the financial statements shall disclose such difference and provide justification in this behalf duly supported by technical advice from an independent technical person.

Certification of Investment in Plant & Machinery for a Medium Enterprise engaged in the manufacture/ production of goods pertaining to any industry specified in the first schedule to the industries (Development and Regulation) Act, 1951, Govt. of India, where the investment in plant & machinery is more than ₹ 10 Crores but not exceeding ₹ 50 Crores.

Central Government exempts capital goods, office equipment, professional equipment, office furniture and consumables related to service sector business and food items from the whole of duty of excise and additional duty of excise subject to a certificate from a Chartered Engineer confirming installation and use of the goods in the factory or premises within 6 months from date of clearance. Managed hotel means hotels managed by a three star or above category Hotel/ Hotel chain under an operating management contract for a duration of at least three years between operating hotel/ hotel chain and hotel being managed. The management contract must necessarily cover the entire range of operations/ management of managed hotel.

CE Certification of Declaration in respect of all the export items covered under Engineering sector as per Col. no. 6 (iv) of ANF - 3E stating the FOB value of exports of engineering sector (excluding iron & steel, non-ferrous metals in primary or intermediate forms, automobiles or two wheelers, nuclear reactors & parts and ships/ boats and floating structures)

Chartered Engineer has to certify BOM for setting up SOLAR POWER PROJECT, which enables the developers to avail concessional customs duty benefits from MNRE (Ministry of New and Renewable Energy). Reconciliation Certificates are also required after the project is commissioned successfully and components imported by the company are installed in the project.

MNRE, Ministry of New and Renewable Energy, offers capital subsidy and central financial assistance (CFA) to Bio Mass Power Plants (Non-Bagasse) which requires certification from independent Chartered Engineer certifying the applicant company’s requirements of new components for set-up and execution of Biomass based power project. The chartered engineer has to certify the list of items procured from various suppliers/ manufacturers

Certification of Cost estimates of plant & machinery to be installed in the plant for availing subsidy from MFPI (Ministry of Food Processing Industries), GOI.

Certifying with recommendations the purchase of indigenous and imported machinery/ equipment for setting up the Laboratory to avail subsid/ grant from Govt. of India.

Certification of Capital Investment in the plant to avail subsidy.

Certification for Cold Chain, Value Addition and Preservation Infrastructure (for non-horticultural products) from Chartered engineer towards Plant & Machinery - indicating item/ stage wise progress, cost, quantity, manufacturer/supplier and comment on quality.

Certification of Civil and Plant & Equipment Cost for Modernization of Abattoirs Scheme (MOFPI)

Certification of documents to claim incentives from Ministry of Communications and Information Technology, Dept. of Information Technology (DeitY) towards investments in the Electronics System Design and Manufacturing sector in India.

Certification of Documents to be submitted for GAIL tendering process.

Inputs Used in Production of The Output Companies have to apply for refund on account of ITC accumulated due to inverted tax structure in FORM GST-RFD-02 to GST authorities for claiming refund - For that Chartered Engineer certificate is required by the competent authorities for processing their refunds- Please contact me as I have been issuing such certificates which will enable companies to claim refund.