EPCG Export Promotion Capital Goods
Export Promotion Capital Goods (EPCG)
EPCG is a scheme announced by Govt of India to promote the production of quality products/services exported from India. Under this scheme, according to the Foreign Trade Policy (2015 – 20 RE 17), a company can import capital goods from other countries without any duty (0% duty). As the scheme suggests that it is for the promotion of exports, the Govt has levied an “Export Obligation” on the importer of capital goods. According to the present policy, the export obligation is six times the duty saved amount, which can fulfill in six years period.
The scheme is a boon to exporters of India. Since businesses do not have to pay vast amounts of duty upfront for the imported machinery. With the best technology available at their disposal they can manufacture best quality goods and services at a faster rate (in few cases), which will attract higher demand and better prices in the International market.
Enquire about EPCG
Manufacturer Exporter.
Any manufacturer who exports his own products can apply for this scheme. If the manufacturer has supporting manufacturers and capital goods have to be installed in their premises, even then the EPCG scheme can be applied by the main manufacturer.
Merchant Exporter.
Merchant exporters who have tie ups with manufacturers can apply for EPCG scheme for importing capital goods in the Manufacturer’s premises. However, the name of the manufacturer shall be endorsed on the EPCG Authorization.
Service Providers.
Various service providers/exporters can take EPCG route to reduce their Capital Cost. Service Providers like Hotels, Tour Operators, Taxi Operators, Construction Companies, Logistics companies can utilize the scheme to import/procure from domestic market, their capital goods at a substantially reduced costs. The EO can be fulfilled by Forex Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc.
For Projects
EPCG can be taken for the projects where exports of goods or services can be envisaged by the use of the project or alternative products. EPCG can be taken along with Project Import scheme in case of new Projects.
For Others
Certain other sectors like Retail Sector in the country, Port Projects etc. can also utilize EPCG scheme to their advantage.
Validity
The EPCG Authorisation will be valid for 18 months. The importer has to import the capital goods within this period.
INDUSTRY VERTICALS
Financial Services
R & D Services
Consulting Services
Communication Services
Construction & Related Engineering Services
Educational Services
Environmental Services
Health Related & Social Services
Tourism & Travel Related Services
Transport Services
Manufacture Industry
Engineering Services
Scroll
