To aid technological up gradation of export sector, epcg scheme at zero duty has been introduced. Meeting, in accordance with the statute of epcg, are. Export promotion capital goods epcg scheme allows import of. There will be no export obligation under project import regulations.
Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to enhance indias export. The government has been modifying the epcg scheme over the years in line with the demands of the domestic industry. May 14, 2014 export promotion capital goods epcg scheme also covers a service provider who is designated certified as a common service provider csp by the dgft. Also, igst on import of capital goods under epcg is exempted till 31 st march 2020. Zero duty epcg scheme allows import of capital goods for preproduction, production and post production including completely knocked down semi knocked downthereof as well as computer software systems at zero customs duty, subject to an export obligation equivalent to 6. Mar 06, 2019 export promotion capital goods epcg scheme is one of the path breaking initiative introduced by the government of indian to facilitate import of capital goods into india. In case of epcg scheme, it should be ensured that installation certificates are submitted within 6 months of completion of imports as stipulated in the corresponding customs notifications.
The purpose of this representation is to humbly request for reinstating benefits under export promotion capital goods epcg scheme to capital goods acquired on lease in the extant foreign trade policy 20152020 as was available under the foreign trade policy 20092014. The purpose of export promotion capital goods epcg scheme is to bring globally competitive in manufacturing and qualitative goods services in order to enhance. Guest export promotion capital goods scheme epcg under ftp 2009 2014. Export promotion capital goods epcg scheme also covers a service provider who is designated certified as a common service provider csp by the dgft. Foreign trade policy 2015 2020 directorate general of. Exports inventives in india meis seis epcg advance. Export promotion capital goods epcg scheme is a scheme which allows an exporter to import of capital goods including spares for preproduction, production and postproduction at zero customs duty, for exports. The participation of private institutes under isea project 67 vi. The zero duty epcg scheme is available to exporters of electronic products. What is export obligation under post export epcg scheme and how the same is fixed.
Zero duty epcg scheme allows import of capital goods. Epcg scheme 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 5% 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 authorisation issue date in case of. The epcg statute also defines the obligations of the shareholders meeting, as well as all relevant actions under its jurisdiction. Customs, ftp and wto newsletter in the issue customs notifications and circulars. The term epcg is abbreviation of the export promotion capital good scheme. Authorisation aaexport promotion capital goods epcg authorisation. Organizational scheme of epcg, excluding the companies in majority ownership of epcg crnogorski elektrodistributivni sistem d. Foreign trade policy permitting import of goods at zero customs.
Export proceeds are to be realized in freely convertible currency except for deemed. Acceptance of installation certificate under epcg scheme by the ras, wherein installation certificate is submitted beyond 18 months, without penalty 14082018 download 1. Export promotion capital goods scheme epcg epcg is a special type of incentive given to the epcg license holder. What is epcg how epcg works in export import trade. The basic purpose of export promotion capital goods scheme is to allow exporters to import capital goods at affordable prices so that they can produce quality products for the export market. Epcg is a four letter word which starts with e and ends with g. The information provided here is part of guide on howtoexport and import. Epcg scheme zero duty scheme foreign trade policy, 20092014 has harmonized the two versions zero duty and 3% concessional duty of epcg schemes w. Capital goods imported under epcg scheme, which are found defective or unfit for use, may be reexported back to foreign supplier within three years from the date of payment of duty on importation thereof, with permission of ra customs authority.
Epcg scheme under new foreign trade policy 201520 ftp 2015. Imports under zero duty scheme shall also not be available for units who are currently availing any benefits under technology upgradation fund scheme tufs administered by ministry of textiles, government of india. It allows import of capital goods for preproduction, production and postproduction including ckdskd 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. Epcg license may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the license holder.
Epcg is a zero duty scheme which allows the import of capital goods such as machinery for preproduction, production and post production of export items. 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 authorisation issuedate. Discuss and evaluate epcg scheme under 20092014 foreign trade policy. Public notices directorate general of foreign trade. Export promotion capital goods scheme epcg under ftp 20092014. Epcg scheme 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 5% 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 authorisation.
However in the case of applications for import of items that are restricted for imports under the epcg scheme for service providers, the regional offices are required to seek a copy of a chartered engineer certificate cec justifying the requirement of the restricted item for imports. Focus product scheme, market linked focus product scheme, focus market scheme, agri. Duty credit scrips issued under post export epcg scheme will be issued only in respect of basic customs duty, even when you are not availing cenvat. What is export obligation under post export epcg scheme and how the same is. In a move that will come as a relief to exporters, the government has decided to make the rules for meeting of export obligation under the popular. Scheme in terms of export and import policy hereinafter referred to as the said. From april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors. General of foreign trade which allows for the import of goods for preproduction, production and postproduction at 0 % duty which is subject to an export obligation of six times of the duty which is saved on an import. Request you to share your experience in working with this scheme epcg export promotion capital goods. Review of foreign trade policy 20092014 cuts citee. Foreign trade policy 1 st april, 2015 31 st march, 2020 government of india ministry of commerce and industry department of commerce. Since the concession under post exports epcg is confined to basic customs duty, the export obligation shall be fixed with reference to the basic customs duty paid by you. The above information is a part of online export import training guide.
Some products for which the drawback rates have changed are specified fibres. Infrastructure incentive scrip, vkguy with different kinds of duty scrips with varying conditions attached to their use have been replaced by a comprehensive single scheme, namely merchandise export from india scheme meis with the specific. As announced in the sixth bimonthly monetary policy statement, 201415. New zealand stood third and china stood 37 in the ranking in 2014. Export promotion capital goods epcg scheme gktoday.
Foreign trade policy 20092014 directorate general of foreign. Merchandise exports from india scheme meis of the policy. Export promotion capital goods epcg scheme in terms of chapter 5 of the. Epcg scheme covers manufacturer exporters with or without supporting manufacturers vendors, and merchant exporters tied to supporting manufacturers and service providers. The scheme allows import of capital goods for pre production, production and post production including ckdskd thereof as well as computer software systems at 5% customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme to be fulfilled over a period of 8 years reckoned from. To enable support to indian industry and exporters. Export promotion capital goods scheme for the period 20092014 updated as on 23.
Annexure common bond for availing duty exemption under. Export promotion capital goods scheme for the period 2009 2014 updated as on 23. Chapter 5 export promotion capital goods epcg scheme policy 5. The long term policy objective for the government is to double indias share in global trade by 2020. The goods imported are covered by a valid licence issued under the export promotion capital.
Zero duty export promotion capital goods epcg scheme government has decided to harmonize zero duty epcg and 3%. May 22, 2018 in a move that will come as a relief to exporters, the government has decided to make the rules for meeting of export obligation under the popular export promotion capital goods epcg scheme more. Second hand capital goods without any restriction on age may also be imported under the epcg scheme. However, zero duty epcg scheme will be available for handicraft exports under chapters 5, 44, 68, 97. Comment below your thoughts and discuss about epcg export promotion capital goods. The purpose of this representation is to humbly request for reinstating benefits under export promotion capital goods epcg scheme to capital goods acquired on lease in the extant foreign trade policy 20152020 as was available under the foreign trade policy 2009 2014. Click here to read about epcg scheme under foreign trade policy 201520. Foreign trade policy 1 st april, 2015 31 st march, 2020 updated upto 30 06 2015 government of india ministry of commerce and industry department of commerce. Epcg scheme under this chapter, to the extent they are not inconsistent with the above provisions of zero duty epcg scheme, shall be applicable to the zero duty epcg scheme also. The correctness of the installation certificate, which are issued by chartered engineer shall be verified on random basis through.
Read more about project import regulations and the epcg schemes on business standard. Click here to read complete notification under budget 2014 what is bank post. May 30, 2014 export promotion capital goods scheme 1. Epcg scheme zero duty scheme foreign trade policy, 2009 2014 has harmonized the two versions zero duty and 3% concessional duty of epcg schemes w. Epcg scheme india, epcg benifits and epcg licence application. Epcg scheme to resultant dta unit from conversion of eou a relocated sez units 5.
Exports by users of the common service, to be counted towards fulfillment of eo of the csp. Discuss and evaluate epcg scheme under 2009 2014 foreign trade policy. Below is the list of all full forms and acronym of epcg. Capital goods imported under epcg scheme are subject to actual user condition and the same cannot be transferred sold till the fulfillment of export obligation specified in the license. Apr 22, 20 from april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors. In the year of 2018, three shareholders assembly meetings were held, the first one on the january 31, 2018, the second one on the march 28, 2018 and the third one on the august 20, 2018. Foreign trade policy 2015 2020 directorate general. Review of foreign trade policy 20092014 introduction the two main objectives of the previous foreign trade policy ftp were. To evolve the businesses as part of culture, indian government already has taken many steps, including giving many. Epcg authorization holder can export either directly or through third party s. Know about epcg scheme and epcg license apply iec code.
Capital goods imported under epcg scheme are subject to actual user condition and the same cannot be transferred sold till the. Chapter 5 of the foreign trade policy, 20092014 harmonizing the two versions zero duty and 3% concessional duty of epcg. Apr 21, 2020 epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. There will be no export obligation under project import regulations, whereas under epcg scheme, export obligation will be imposed. Epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. Ca certificate certifying last 3 years exports, if available. Airtel says removed from denied entry list 31 jan, 2020, 09. By 2014, we expect to double indias exports of goods and services. Foreign trade policy 1 st april, 2015 31 st march, 2020 updated upto 30 06 2015 government of india. Export promotion capital goods epcg scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issue date. Export oriented units eous, electronics hardware technology parks ehtps, software technology parks stps and biotechnology parks btps quality complaints and trade disputes. Export obligation under epcg scheme made more flexible the. Epcg scheme is regulated by the ministry of commerce under the directorate.
65 268 540 222 561 435 591 584 733 205 604 1007 824 829 613 262 827 122 1108 1468 1211 348 333 1296 1050 12 596 641 675 1025 1164 454 1020