EXPORT PROMOTION CAPITAL GOODS (EPCG Scheme)
Objective: To offset high freight cost and other externalities to international markets with a view to enhance India's export competitiveness in select countries.
This scheme permits import of capital goods for pre-production, production and post production (including CKD / SKD as well as computer software systems) at 0% (zero pc) Customs duty.
Eligibility: Manufacturer exporters with or without supporting manufacturer(s) / vendor(s), and merchant exporters tied to supporting manufacturer(s) and service providers within following sectors;
- Engineering & electronic products
- Basic chemicals & pharmaceuticals
- Apparels & textiles
- Chemicals & allied products, and
- Leather & leather products
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Additionally, the exports made under the following category can be counted towards fulfillment of export obligation imposed on EPCG Licence;
- Shipments made under Advance Authorization, Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorization (DFIA), Duty Entitled Pass Book (DEPB) or Drawback scheme, or any other incentive schemes.
- Royalty payments received in freely convertible currency and foreign exchange received for R&D services
- Payment received in rupee terms for port handling services