Export Promotion Capital Goods (EPCG) Scheme
The Zero duty EPCG scheme allows import of capital goods for production, at zero% Customs duty with export obligation.
EPCG license is also allowed for Service sector like hotels, Tour travel Operators etc. earning foreign exchange.
Export Obligation:
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, is now 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.
All kind of Import Allowed:
Under EPCG, Import of Restricted items of imports mentioned under ITC (HS) shall only be allowed to be imported under the Scheme 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.
Eligibility:
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.
Redemption:
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 all kind of EPCG licenses.
