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. 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. Public notices directorate general of foreign trade. Foreign trade policy 2015 2020 directorate general of. Merchandise exports from india scheme meis of the policy. Epcg is a four letter word which starts with e and ends with g. Export promotion capital goods epcg scheme the zero duty epcg scheme is available to exporters of electronic products. As announced in the sixth bimonthly monetary policy statement, 201415. The term epcg is abbreviation of the export promotion capital good scheme. The above information is a part of online export import training guide. Export oriented units eous, electronics hardware technology parks ehtps, software technology parks stps and biotechnology parks btps quality complaints and trade disputes.
Epcg authorization holder can export either directly or through third party s. 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 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. 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. 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incentive scrip, vkguy with different kinds of duty scrips with varying conditions attached to their use have been replaced by a comprehensive single scheme, namely merchandise export from india scheme meis with the specific.
Airtel says removed from denied entry list 31 jan, 2020, 09. 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. Customs, ftp and wto newsletter in the issue customs notifications and circulars. Export promotion capital goods scheme epcg under ftp 20092014. Discuss and evaluate epcg scheme under 2009 2014 foreign trade policy. 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. Project import regulations and the epcg schemes business. Export promotion capital goods epcg scheme in terms of chapter 5 of the. Epcg scheme india, epcg benifits and epcg licence application.
Foreign trade policy 2015 2020 directorate general. Export promotion capital goods scheme epcg under ftp 2009 2014. Also, igst on import of capital goods under epcg is exempted till 31 st march 2020. Export promotion capital goods epcg scheme gktoday. 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.
The correctness of the installation certificate, which are issued by chartered engineer shall be verified on random basis through. 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. The goods imported are covered by a valid licence issued under the export promotion capital. Acceptance of installation certificate under epcg scheme by the ras, wherein installation certificate is submitted beyond 18 months, without penalty 14082018 download 1. Chapter 5 export promotion capital goods epcg scheme policy 5. Chapter 5 of the foreign trade policy, 20092014 harmonizing the two versions zero duty and 3% concessional duty of epcg. 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. Export promotion capital goods epcg scheme allows import of.
Click here to read about epcg scheme under foreign trade policy 201520. 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. What is epcg how epcg works in export import trade. Comment below your thoughts and discuss about epcg export promotion capital goods.
Zero duty export promotion capital goods epcg scheme government has decided to harmonize zero duty epcg and 3%. The epcg statute also defines the obligations of the shareholders meeting, as well as all relevant actions under its jurisdiction. What is export obligation under post export epcg scheme and how the same is. 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. The purpose of export promotion capital goods epcg scheme is to bring globally competitive in manufacturing and qualitative goods services in order to enhance. 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. 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. Request you to share your experience in working with this scheme epcg export promotion capital goods. Exports inventives in india meis seis epcg advance.
Review of foreign trade policy 20092014 cuts citee. Discuss and evaluate epcg scheme under 20092014 foreign trade policy. Export obligation under epcg scheme made more flexible the. 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. 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. May 30, 2014 export promotion capital goods scheme 1. Foreign trade policy 1 st april, 2015 31 st march, 2020 government of india ministry of commerce and industry department of commerce. Below is the list of all full forms and acronym of epcg. The participation of private institutes under isea project 67 vi. 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. 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.
Export promotion capital goods scheme for the period 20092014 updated as on 23. Authorisation aaexport promotion capital goods epcg authorisation. 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. Foreign trade policy permitting import of goods at zero customs. Import incentives depb epcg dfia under special schemes. 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. Focus product scheme, market linked focus product scheme, focus market scheme, agri. 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. Export promotion capital goods scheme epcg epcg is a special type of incentive given to the epcg license holder.
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. 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. Read more about project import regulations and the epcg schemes on business standard. 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 are subject to actual user condition and the same cannot be transferred sold till the fulfillment of export obligation specified in the license. Apr 21, 2020 epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. Meeting, in accordance with the statute of epcg, are. Export obligation under epcg scheme made more flexible. 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. Epcg scheme is regulated by the ministry of commerce under the directorate. There will be no export obligation under project import regulations, whereas under epcg scheme, export obligation will be imposed.
The information provided here is part of guide on howtoexport and import. 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. Exports by users of the common service, to be counted towards fulfillment of eo of the csp. Scheme in terms of export and import policy hereinafter referred to as the said. Epcg scheme covers manufacturer exporters with or without supporting manufacturers vendors, and merchant exporters tied to supporting manufacturers and service providers. To evolve the businesses as part of culture, indian government already has taken many steps, including giving many. At present, before operationalization of new foreign trade policy 201419, the epcg authorizations are issued to manufacturer exporters and merchant exporter. 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. Epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. What is export obligation under post export epcg scheme and how the same is fixed.
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. 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. New zealand stood third and china stood 37 in the ranking in 2014. 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. Foreign trade policy 1 st april, 2015 31 st march, 2020 updated upto 30 06 2015 government of india. Ca certificate certifying last 3 years exports, if available. The export promotion capital goods epcg scheme was one of the several exportpromotion. Second hand capital goods without any restriction on age may also be imported under the epcg scheme.
Some products for which the drawback rates have changed are specified fibres. The long term policy objective for the government is to double indias share in global trade by 2020. There will be no export obligation under project import regulations. Zero duty epcg scheme allows import of capital goods.
Annexure common bond for availing duty exemption under. The government has been modifying the epcg scheme over the years in line with the demands of the domestic industry. However, zero duty epcg scheme will be available for handicraft exports under chapters 5, 44, 68, 97. Epcg scheme under new foreign trade policy 201520 ftp 2015. To enable support to indian industry and exporters. Epcg scheme to resultant dta unit from conversion of eou a relocated sez units 5. The zero duty epcg scheme is available to exporters of electronic products. Know about epcg scheme and epcg license apply iec code. Review of foreign trade policy 20092014 introduction the two main objectives of the previous foreign trade policy ftp were. By 2014, we expect to double indias exports of goods and services. To aid technological up gradation of export sector, epcg scheme at zero duty has been introduced. 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. Export promotion capital goods scheme for the period 2009 2014 updated as on 23.
Export proceeds are to be realized in freely convertible currency except for deemed. Capital goods imported under epcg scheme are subject to actual user condition and the same cannot be transferred sold till the. Foreign trade policy 20092014 directorate general of foreign. Organizational scheme of epcg, excluding the companies in majority ownership of epcg crnogorski elektrodistributivni sistem d. 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. Click here to read complete notification under budget 2014 what is bank post. The export promotion capital goods epcg scheme was one of the several exportpromotion initiatives launched by the government in the early 90s. In terms of notifications issued for advance authorisation scheme, the importer has to fulfil the export obligation, as specified in the said authorization both in. Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to enhance indias export.
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