The Zero duty EPCG Scheme is available to exporters of electronic products. It allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof as well as computer software systems) at zero% 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.
Overview of Export Promotion Capital Goods (EPCG) scheme
| Name | Export Promotion Capital Goods Scheme |
| Also known as | EPCG |
| Launched by | Government of India |
| Launch year | 1 April 2015 |
| Nodal Ministry | Ministry of Electronics and Information Technology |
| Sector | Central sector scheme |
| Objective | to facilitate import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness. |
| Official website | https://www.dgft.gov.in/CP/?opt=epcg |
Objective and Benefits of Export Promotion Capital Goods (EPCG) scheme
•To incentivize fast track companies to accelerate exports, there is a provision for early redemption and in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified , remaining export obligation shall be condoned.
External links
Capital Good
