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Export Promotion Capital Goods Scheme
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- All India
Located in New Delhi, India, we are successfully engaged in providing Export Promotion Capital Goods Scheme service. Our highly qualified professionals are committed to render this service in which they promote exports in high numbers as per the government ethics and rules. We focus on increasing the economic growth of the country by suggesting and properly implementing of export schemes. Moreover, we provide the offered Export Promotion Capital Goods Scheme service to our clients at cost effective rates.
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- On time accomplishment of tasks
- Provide unbeatable solution of exporting goods
Export Promotion Of Capital Goods (EPCG-Scheme)
We offer wide range of Export Promotion Of Capital Goods (EPCG-Scheme). Our successfully running consultancy firm which has not only survived in this cut throat competitive world but has also learned to take up professional challenges and accomplishing them in the best manner.
Traders are eagerly awaiting to know new amendments and modification on export promotion scheme, Export Promotion Capital Goods EPCG in new Foreign Trade Policy 2014-19, expected to be operationalized by end October, 2014.
Under EPCG scheme of Foreign Trade Policy, import of capital goods which are required for the manufacture of resultant export product specified in the EPCG Authorization is permitted at nil/concessional rate of Customs duty. The Export Promotion Capital Goods scheme under FTP enables up gradation of technology of the indigenous industry. EPCG Authorizations are issued by Regional Licensing Authority of Director General of Foreign Trade on the basis of nexus certificate issued by an independent chartered engineer.
As per the Foreign Trade Policy 2009-14 amended later time to time in annual supplements, the EPCG Authorization holder is permitted to import capital goods at 0% or 3% Customs duty. Under the 0% duty EPCG Authorization holder is required to undertake export obligation equivalent to 6 times of the duty saved amount on the capital goods imported within a period of 6 years reckoned from the date of issue of Authorization. Under the 3% duty EPCG scheme, the Authorization holder has to fulfill EO equivalent to 8 times of the duty saved amount on the capital goods imported in 8 years.
Under EPCG scheme, the capital goods imported are subject to actual user condition and the goods imported cannot be transferred or sold till the fulfillment of export obligation. In order to ensure that the capital goods imported under EPCG scheme are utilized in the manufacture of resultant export product, after importation and clearance of capital goods from Customs area at importing location, the Authorization holder is required to produce certificate from the jurisdictional Central Excise Authority or Chartered Engineer confirming installation of such capital goods in the declared premises. At present, a period of 6 months is allowed for the purpose of installation of capital goods and commencement of production. This period may be extended by the Assistant/Deputy Commissioner of Customs.
At present, before operationalization of new Foreign Trade Policy 2014-19, the EPCG Authorizations are issued to manufacturer exporters and merchant exporter with or without supporting manufacturer, and service providers. EPCG scheme is also available to a service provider who is designated or certified as a Common Service Provider by the DGFT or State Industrial Infrastructural Corporation in a Town of Export Excellence. EPCG authorization issued to a Common Service Provider gives details of the users and the quantum of export obligation which each user has to fulfill. The CSP as well as the specific users are under an obligation to fulfill the export obligation under EPCG scheme.
At present, up to 50% of the EO may also be fulfilled by export of other goods manufactured or service provided by the importer or his group company or managed hotel, which has the EPCG Authorization, subject to the condition that in such cases, additional EO imposed shall be over and above the average exports achieved by the importer or his group company or managed hotel in preceding three years for both the original and the substitute products or services .
The EPCG Authorization specifies the value,quantity or both of resultant export product to be exported against it. In the case of manufacturer,merchant or service exporters, such export obligation is required to be fulfilled by exporting goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported under the scheme.
After the introduction of Export Promotion Capital Goods scheme by Foreign Trade Policy and subsequent amendments and supplements ordered in different circulars till 18th January, 2011, the EPCG Authorization holder is required to file a bond with or without bank guarantee with the Customs prior to commencement of import of capital goods. Bank guarantee equal to 100% of the differential duty in case of merchant exporters and 25% in case of manufacturer exporters is required to be submitted except in case of a few exempted categories to ensure fulfillment of specified export obligation as well as to secure interest of revenue.
Now, EPCG Authorization can also be obtained for annual requirement with a specific duty saved amount and corresponding export obligation. It indicates the export products through which export obligation shall be fulfilled.
The EPCG scheme allows import of capital goods for pre production, production and post production at 3% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported to be fulfilled over a period of 8 years reckoned from the date of issuance of the authorisation.
The capital goods shall include spares (including refurbished/ reconditioned spares), tools, jigs, fixtures, dies and moulds. EPCG Authorisation may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the authorisation holder.
An EPCG authorisation can also be issued for import of capital goods for supply to projects notified by the Central Board of Excise and Customs under wherein the basic customs duty on imports is 10% with a CVD of 14%.
Payment of Duty under EPCG Scheme, through debit of DEPB or other duty credit scrips would be allowed w.e.f. 01.01.2009