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Under Export
Promotion Capital Goods (EPCG) scheme, a licence holder can import capital
goods (i.e. plant, machinery, equipment, components and spare parts of the
machinery) at concessional rate of customs duty of 5% and without CVD and
special duty. Computer software systems are also eligible. Import of spares
of capital goods is permitted, without any limit. Jigs, fixtures, dies,
moulds will be allowed to the extent of 100% of CIF value of licence. Spares
for existing plant and machinery can also be imported.
HIGHLIGHTS
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EPCG license
is issued with validity period of 24 months.
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Merchant
Exporters can also import capital goods under EPCG scheme, if the capital
goods are installed in the factory of their supporting manufacturer. The
name and address of supporting manufacturer should be endorsed on EPCG
licence and bond with Bank guarantee has to be executed jointly and
severally by merchant exporter and his supporting manufacturer.
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The basic
customs duty payable is 5%. Additional Customs Duty / CVD is exempt.
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