EXPORT PROMOTION CAPITAL GOODS (EPCG)
Objective: To offset high freight cost and other externalities to international markets with a view to enhance India�s export competitiveness in select countries.
This scheme permits import of capital goods for pre-production, production and post production (including CKD / SKD as well as computer software systems) at either 0% (zero pc) or 3% (three pc) Customs duty.
Eligibility: Manufacturer exporters with or without supporting manufacturer(s) / vendor(s), and merchant exporters tied to supporting manufacturer(s) and service providers within following sectors;
Engineering & electronic products
Basic chemicals & pharmaceuticals
Apparels & textiles
Plastics
Handicrafts
Chemicals & allied products, and
Leather & leather products
Click here for printer friendly version
Click here for downloadable "EPCG Calculation" Microsoft Excel file
|
0% Duty EPCG Scheme Import of capital goods at zero percent Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date. |
3% Duty EPCG Scheme Import of capital goods at zero percent Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issue-date. |
* Zero duty EPCG Scheme is not available for import of capital goods relating to export of products covered under following Chapters / headings of ITC(HS) classification:
Chapters: 1 to 24, 25 to 27, 31, 40, 43, 44, 45, 47 to 49, 68 to 70, 71, 81 (metals in primary and intermediate forms only), 89, 93, 97, 98.
ITC(HS): 7201 to 7212, 7218 to 7220, 7224 to 7226, 7401 to 7406, 7501 to 7504, 7601 to 7603, 7801, 7802, 7901 to 7903, 8001, 8002 and 8401.
However, zero duty EPCG Scheme is available for handicraft exports under Chapters 5, 44, 68, 97.
Second hand capital goods, without any restriction on age, may be imported under EPCG scheme. Import of motor cars, sports utility vehicles/all purpose vehicles are allowed for hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts, subject to the certain conditions.
For agro units, and units in cottage or tiny sector, import of capital goods at 3% Customs duty is allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods in 12 years from Authorization issue-date.
For SSI units, import of capital goods at 3% Customs duty is allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods in 8 years from Authorization issue-date.
Additionally, the exports made under the following category can be counted towards fulfillment of export obligation imposed on EPCG Licence;
Shipments made under Advance Authorization, Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorization (DFIA), Duty Entitled Pass Book (DEPB) or Drawback scheme, or any other incentive schemes.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services
Payment received in rupee terms for port handling services
*All above subject to EXIM policy in force