Export Promotion Capital Goods (EPCG) Scheme:
The Zero duty EPCG scheme allows import of capital goods for production, at zero% Customs duty.
EPCG license is also allowed for Service sector like hotels, Tour & travel Operators etc., those earning foreign exchange.
Under EPCG scheme, specific Export Obligation is 6 times of Duty Saved on the C G imported, to be fulfilled in 6 years.
This scheme of 0% EPCG is for Exports of all Products.
Zero duty EPCG Scheme is now available for Units who are currently also availing benefits under Technology Up-gradation Fund Scheme (TUFS) also with import validity, now reduced to 18 months.
Imports of Moulds, dies, jigs, spares, fixtures etc. including Spares, tools, refractory for initial lining and catalyst for Ist and 2nd charge are also allowed under EPCG, subject to an E.O. equivalent to 50% of the normal E.O.
Under EPCG Scheme, Import of Restricted items of imports mentioned under ITC (HS) shall only be allowed to be imported, under the after approval from the Import Licensing Committee at DGFT (HQ).
Spares (including refurbished / reconditioned spares), tools, spare refractories & catalyst for existing Plant & Machinery (Imported earlier, under EPCG or otherwise).
The DGFT has also decided that "construction items" are not to be considered under EPCG License, except for Service Industry.
Import of Second hand Capital Goods has now been disallowed under EPCG scheme with effects from 01.04.13.
The scheme covers manufacturer exporters - with or without supporting manufacturer(s) & subject to Actual User condition, till the export obligation (E.O.) is completed.
AEP (Average Export Performance):
This export obligation is over and above, the average level of exports achieved by the exporter in the preceding three licensing years for same and similar products.
On completion of import, it is mandatory to file installation certificate with licensing authority.
On completion of import & export, redemption of the license is to be applied with export documents and original license.
We undertake all issuance / redemption cases of EPCG licenses.