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Export Promotion Capital Goods (EPCG)
Export Promotion Capital Goods scheme
The exporters are entitled for import of new capital goods under this scheme without payment of custom duties. The exporter can also purchase domestic capital goods under this scheme by obtaining Invalidation letter. The exporter is required to achieve pre-defined level of export which is generally specified in “number of time of duty saved by the exporter”.
We have in-house EPCG scheme experts to assist our clients in,
Quantifying the benefits under the EPCG Authorisaiton and listing down requirements pertaining to it.
Obtaining EPCG Authorization from Director General of Foreign Trade (DGFT)
Guiding w.r.t. documentation and procedural requirement related to EPCG
Assistance in compliances with DGFT post EPCG
Getting Export Obligation Discharge certificate and release of Bond after fulfilling export obligation.
Zero duty EPCG scheme permit import of capital goods for pre-production, production and post-production 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.
The export promotion capital goods scheme can be taken both post exports and pre exports. The export requirement discharged would require fulfilment of specific export obligation in addition to the existing Average export performance over a period of three years.
Period of import would be 9 months. Exporters availing benefit under Technology Up gradation Fund Scheme can also avail benefit of Zero duty EPCG Scheme. Import of motor cars, SUV’s, all purpose vehicles by hotels, travel agents, or tour or transport operators and companies owning/ operating golf resorts not allowed. Export Obligation for domestic sourcing of capital goods under EPCG scheme has been reduced by 10% to encourage import substitution.