Chartered Engineer Certificate for Nexus under EPCG Scheme
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A Machinery Installation Certificate and a Nexus Certificate are two different technical certificates, although both are often issued by a Chartered Engineer or qualified technical expert. They serve different purposes and are used in different regulatory and commercial
contexts.
Machinery Installation Certificate
This certificate typically confirms:
- The machinery has been installed at the specified factory or project site.
- The installation has been completed according to the manufacturer’s recommendations.
- The machinery is operational or ready for commercial use.
- Details such as the machine description, serial number, installation date, and location.
It is commonly required for:
- Customs compliance after importing capital goods.
- Availing government incentives or subsidies.
- Bank financing and loan documentation.
- Insurance purposes
Nexus Certificate
A Nexus Certificate establishes the relationship (or “nexus”) between imported goods and the final product or project. It certifies:
- That the imported machinery, equipment, or raw materials are directly required for manufacturing a specific product or executing a particular project.
- The quantity and technical specifications needed.
- That the imported items are appropriate for the stated production process.
It is often required for:
- Customs duty exemptions or concessional duty schemes.
- Export promotion schemes.
- Project imports.
- Government incentive programs.
