Payment of advance does not create any lien over the supplier’s assets. Your rights arise only from the contract between you and the supplier. In case of any damage to the unfinished work at the supplier’s end, you have no liability or obligations and so, you need not take insurance for that. You can hold the supplier responsible for shipment of machine in accordance with the contract, regardless of any untoward incidents at this end.
Q. Is it mandatory to ask a foreign exporter to declare in his invoice that this import into India is as per FTP 2015-20, as extended by one year, and the item is freely importable or restricted (subject to DGFT's permission)?
No. The foreign party is not expected to know the details of our FTP.
Q. Under EPCG scheme, can we opt to pay the IGST at the time of import and take credit of the same?
As per Para 5.01 (d) of FTP, in case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the said Integrated Tax and Compensation Cess would not be taken for computation of net duty saved, provided Input Tax Credit is not availed. So, the option to pay IGST is there, but if you take Credit of it, your export obligation will have to be calculated as though you availed exemption of IGST. If, however, you do not take Credit of IGST paid, you need not count it as duty saved for calculating export obligation.