EPCG Scheme or Export Promotion Capital Goods Schemes fulfills the import requirements of capitalized goods. This helps in the production of quality services and goods that contributed in enhancing India’s competitiveness for export.
EPCG Scheme :
- EPCG Scheme enables the import of capitalized goods for convenient pre-production, production and post-production at Zero customs duty. In addition, the authorization holder can procure the goods from indigenous sources as per the provisions of paragraph 5.07 of FTP. The capital goods are utilized for the purpose of the EPCG scheme that includes:
- Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof;
- Computer software systems;
- Spares, moulds, dies, jigs, fixtures, tools & refractory for initial lining and spare refractory; and
- Catalysts for initial charges plus one subsequent charge.
- Under the EPCG schemes, the capital goods import for projects imports is notified by the Central Board of Excise and Customs.
- The import under EPCG Scheme is subject to an export obligation that is equivalent to 6 times of the duty saved on capital goods. From the date of authorization issue is required to be fulfilled in 6 years.