What is mean by EPCG?

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What is mean by EPCG?

Export Promotion Capital Goods Scheme
EPCG Scheme. noun [ S ] COMMERCE. us. abbreviation for Export Promotion Capital Goods Scheme: in India, a rule allowing a company to import capital goods used in production at a low rate of tax, on condition that the company exports goods to a particular value over a number of years.

How does EPCG scheme work?

Export Promotion Capital Goods (EPCG) License, as the name suggests, is intended to act as a stimulus for exports. It allows import of capital goods at 3\% Customs Duty subject to the condition that an Export Obligation of eight times the duty saved is to be fulfilled within 8 years of Authorization issue date.

Who is eligible for EPCG scheme?

1 Who are eligible to avail of the EPCG Scheme? A. The manufacturers, Exporters and Merchant Exporters are eligible to avail of this Scheme. Q.

How can I use EPCG Licence?

EPCG Online Application Procedure

  1. Step 1: Visit the DGFT Official website.
  2. Step 2: Log in with DGFT Digital Signature Certificate.
  3. Step 3: Create a New File.
  4. Step 4: Fill initial mandatory details.
  5. Step 5: Filling Industrial Registration, Export House & RCMC Details.
  6. Step 6: Fill the Factory Address.
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What are EPCG benefits?

EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty. Capital goods imported under EPCG for physical exports are also exempt from IGST and Compensation Cess up to 31.03.2020.

What is EPCG guarantee?

EPCG means, Export Promotion Capital Goods. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years. EPCG is a good facility provided to exporters and importers by government on exemption of import duty amount.

What are the benefits of EPCG?

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- …

What is EPCG obligation?

EPCG scheme facilitates import of capital goods for producing quality goods and services to enhance India’s export competitiveness. Under the EPCG scheme, capital goods imported at zero customs duty must fulfil EPCG export obligation equivalent to 6 times of duty saved on the capital goods.

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Who are not eligible under EPCG scheme?

Such domestic manufacturer shall be eligible for deemed export benefit under FTP. -License under this scheme shall not be issued for the import of any capital goods for Electricity Generations or Supply plants. -Import of second hand capital goods are not permitted under the EPCG scheme.

Is EPCG scheme still available?

The DGFT vide Notification No. 54/2015-20 has amended the FTP (Foreign Trade Policy) and has extended IGST and Compensation Tax exemption under EPCG Scheme till October 01, 2018. This move would offer much-needed relief to exporters who are under the stress with respect to refunds under the GST regime.

When was EPCG introduced?

The Export Promotion Capital Goods (EPCG) scheme was one of the several export-promotion initiatives launched by the government in the early ’90s.

What is an EPCG scheme?

EPCG Scheme (Export Promotion Capital Goods Scheme) This is a Scheme that enables an importer (being an export-oriented business) to import capital goods at zero rates of customs duty.

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What is export promotion capital goods (EPCG) scheme?

EPCG (Export Promotion Capital Goods) Scheme helps in facilitating the import of capital goods for manufacturing quality goods and to augment the competitiveness of India’s export. EPCG scheme enables the import of capital goods that are used in the pre-production, production, and post-production without the payment of customs duty.

What are the benefits of getting an EPCG license?

Apart from other financial assistance for exporters, you can get exemption of 100\% import duty amount while importing such machineries. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years.

Who is eligible for FTP under EPCG?

Exporters of electronic products. EPCG Authorization holder may also source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under FTP. EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization.