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