EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. The EPCG scheme allows duty free import of capital goods new capital goods at NIL Customs duty as against the normal total of 26.428%, thus providing a total duty saved of import value. EPCG comes with condition that export obligation to be fulfilledthat equivalent to 6 times of duty saved, to be done over a period of 6 years. The export obligation needs to be fulfilled by the license holder.We are Chartered Accountant firm provide EPCG Scheme DGFT Services in Gurgaon.
The export obligation needs to be fulfilled by the export of goods or services capable of being manufactured or produced by the use of the capital goods imported under the scheme.
EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources.
In case of direct imports, EO shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, EO shall be reckoned with reference to notional Customs duties saved on FOR value
Import of capital goods shall be subject to Actual User condition till the export obligation (E.O.) is completed. The following shall apply to the fulfillment of the export obligation:-
The Authorisation holder under the EPCG scheme shall, while maintaining the average export obligation, fulfill the specific export obligation over the prescribed block period in the following proportions:-
Period from the date of issue of Authorisation | Minimum export obligation to be fulfilled |
Block of 1st to 4th year | 50% |
Block of 5th and 6th year | Balance EO |
The Authorisation holder would intimate the Regional Authority on the fulfilment of the export obligation, as well as average exports, within three months of completion of the block, by secured electronic filing using digital signatures.
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