PARA 5.1
- Document type
- Policy
- Reference no.
- 01
- Dated
EPCG Scheme
5.1
The scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence.
However, in respect of EPCG licences with a duty saved value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.
(Above sub para 2 has been corrected vide Ntf. No. 07/2003, Dt. 22/04/2003)
[OLD -
However, in respect of EPCG licences with a CIF value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years. ]
The capital goods shall include spares, jigs, fixtures, dies and moulds. EPCG licence may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder.
Second hand capital goods upto 10 years old may also be imported under the EPCG scheme.
Spare refractories, catalyst and consumable for the existing plant and machinery may also be imported under the EPCG scheme . However, import of motor cars, sports utility vehicles/ all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators whose foreign exchange earning in current licencing year or preceding 1/2/3 licencing years is Rs 1.5 crores.
(Above sub-paragraph has been inserted vide NTF. No. 28/2003, DT. 28/01/2004)
(Please refer Cir. No. 16/2003, Dt. 29/09/2003 for Import of second hand personal computers (PCs) / Laptops - Clarification)
(Please refer CUS CIR NO.25/2003 DATE 01/04/2003)
The scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence.
However, in respect of EPCG licences with a duty saved value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.
(Above sub para 2 has been corrected vide Ntf. No. 07/2003, Dt. 22/04/2003)
[OLD -
However, in respect of EPCG licences with a CIF value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years. ]
The capital goods shall include spares, jigs, fixtures, dies and moulds. EPCG licence may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder.
Second hand capital goods upto 10 years old may also be imported under the EPCG scheme.
Spare refractories, catalyst and consumable for the existing plant and machinery may also be imported under the EPCG scheme . However, import of motor cars, sports utility vehicles/ all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators whose foreign exchange earning in current licencing year or preceding 1/2/3 licencing years is Rs 1.5 crores.
(Above sub-paragraph has been inserted vide NTF. No. 28/2003, DT. 28/01/2004)
(Please refer Cir. No. 16/2003, Dt. 29/09/2003 for Import of second hand personal computers (PCs) / Laptops - Clarification)
(Please refer CUS CIR NO.25/2003 DATE 01/04/2003)