Export Promotion of Capital Goods (EPCG) Scheme for importers and exporters


Ministry

Ministry of Communication and Information Technology Schemes

Description

The capital goods shall include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dies and moulds. Second-hand capital goods, without any restriction on age, may also be imported under the EPCG scheme. Export obligation can also be fulfilled by the supply of ITA-1 items to the DTA, provided realisation is in free foreign exchange.

Sponsored By

Central Government of India

Objective

Allows import of spares and refurbished/ reconditioned capital goods, and fulfilment of export obligation by supplying ITA-1 items to DTA against realisation in free foreign exchange

Eligibility

The following conditions should be fulfilled to avail the benefits under this scheme

  1. Manufacturer exporters with or without supporting manufacturer(s)/ vendor(s)
  2. Merchant exporters tied to supporting manufacturer(s) and service providers
  3. A service provider who is designated/certified as a Common Service Provider(CSP)

Beneficiaries

Benefits

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 the date of authorisation issue.

Concessional 3% duty: EPCG scheme allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof as well as computer software systems) at 3% 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 the date of authorisation issue.

How To Apply

A Udyami Helpline: Dial 1800-180-6763 [Toll Free Number] for queries relating to this Schemes.

Contact to

To Directorate General of Foreign Trade (DGFT)

Status

Active

Sector

Communication And Informaton Technology



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