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.|
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.