Important Tips
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
The scheme allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof as well as computer software systems) at 5% customs duty subject to an export obligation equivalent to eight times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. However, in respect of EPCG licences with a CIF value of Rs 100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.
Capital goods shall include spares, jigs, fixtures, dies and moulds. EPCG licence may be also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder. Second-hand capital goods up to 10 years old may also be imported under the EPCG scheme.
Spares for the existing plant and machinery may also be imported under the EPCG scheme subject to an export obligation equivalent to eight times of duty saved to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. The scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Import of capital goods shall be subject to actual user condition till the export obligation is completed. The following conditions shall apply to the fulfillment of the export obligation:
The export obligation shall be fulfilled by the export of goods capable of being manufactured or produced by the use of the capital goods imported under the scheme. The export obligation may also be fulfilled by the export of same goods, for which EPCG licence has been obtained, manufactured or produced in different manufacturing units of the licence holder/specified supporting manufacturer (s)/vendor (s). The export obligation under the scheme shall be, over and
The scheme allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof as well as computer software systems) at 5% customs duty subject to an export obligation equivalent to eight times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. However, in respect of EPCG licences with a CIF value of Rs 100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.
Capital goods shall include spares, jigs, fixtures, dies and moulds. EPCG licence may be also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder. Second-hand capital goods up to 10 years old may also be imported under the EPCG scheme.
Spares for the existing plant and machinery may also be imported under the EPCG scheme subject to an export obligation equivalent to eight times of duty saved to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. The scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Import of capital goods shall be subject to actual user condition till the export obligation is completed. The following conditions shall apply to the fulfillment of the export obligation:
The export obligation shall be fulfilled by the export of goods capable of being manufactured or produced by the use of the capital goods imported under the scheme. The export obligation may also be fulfilled by the export of same goods, for which EPCG licence has been obtained, manufactured or produced in different manufacturing units of the licence holder/specified supporting manufacturer (s)/vendor (s). The export obligation under the scheme shall be, over and