The Export Promotion Capital Goods (EPCG) Scheme aims to make it easier to import capital goods for the production of high-quality goods and services while also improving India's manufacturing competitiveness. The EPCG Scheme provides zero-duty imports of capital goods for pre-production, production, and post-production.
Spares (including refurbished/reconditioned spares), tools, jigs, fittings, dies, and moulds are all examples of capital goods. The EPCG Scheme allows for the importation of secondhand capital items without regard to their age.
This Scheme is available to manufacturers, exporters, and merchant exporters.
From 31 March 2021 to 31 March 2022, the Central Board of Indirect Taxes and Customs (CBIC) has extended the exemption from payment of integrated tax and compensatory cess on imports made under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes.
The Export Promotion Capital Goods (EPCG) License, as the name implies, is designed to encourage exports. It permits the import of capital goods at a customs duty rate of 3% if an Export Obligation of eight times the duty saved is met within eight years of the Authorization's issuance date.
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