- The import of capital goods, machineries, etc., made by a resident in India, is in accordance with the Export / Import Policy issued by the Government of India as notified by the Directorate General of Foreign Trade (DGFT) and the regulations issued under the Foreign Exchange Management Act (FEMA), 1999 relating to imports issued by the Reserve Bank;
- There is an independent valuation of the capital goods / machineries / equipments (including second-hand machineries) by a third party entity, preferably by an independent valuer from the country of import along with production of copies of documents /certificates issued by the customs authorities towards assessment of the fair-value of such imports;
- The application should clearly indicate the beneficial ownership and identity of the importer company as well as the overseas entity; and
- All such conversions of import payable for capital goods into FDI should be completed within 180 days from the date of shipment of goods.
A. P. (DIR Series) Circular No.74 dated 30 June 2011