Circulars archive directorate general of foreign trade. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of. Benefit of zero duty epcg scheme has been extended to all sectors by merging existing 3% scheme with the new zero. Duty exemption scheme and epcg scheme for indian exports. In the new scheme, available from 18 april 20, epcg in its dutyexemption avatar is a complete waiver of import duties. Now the zero duty epcg benefits will be available to all sectors. Cce 20 288 elt 161 sc, held that a mere nonpayment of duties cannot result in invocation of extended period of. As per the 20 act, net worth is the aggregate of paidup share capital, all reserves created out of profits and securities premium. Highlights of annual supplement 2014 to the foreign trade. Verification and monitoring related to aa, dfia, epcg and post export epcg authorizations 171 9. It allows import of capital goods for preproduction, production and postproduction including ckdskd thereof as well as computer software systems at zero% customs duty, subject to an export obligation.
The exporters are entitled to import of new capital goods under this scheme without payment of customs duties relates to tax. Duty exemption scheme and epcg scheme for indian exports 16. Post export epcg scheme was also announced which was notified on 18 february, 20 by the cbec. Industry the index of industrial production llp based. Export oriented units eous, electronics hardware technology parks ehtps, software technology parks stps and biotechnology parks btps. External sector and indias foreign trade policy ftp 200914 annual report 2014 45 china amongst others. Application for grant of authorization for export of various chemicals in terms of notification no. Export promotion capital goods scheme linkedin slideshare. The scheme also provides for post export epcg duty credit scrips which are available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme. Project import regulations and the epcg schemes business.
Based on the request of all stakeholders, government has decided to harmonize zero duty epcg and 3% epcg scheme into one scheme which will be a zero duty epcg scheme covering all sectors. The exporter can also purchase domestic capital goods under this scheme by obtaining invalidation letter. Epcg scheme, while other units are dta units, then the average export obligation in respect of the authorisations issued to the firm company other. Government of maharashtra industries, energy and labour. In a move that will come as a relief to exporters, the government has decided to make the rules for meeting of export obligation under the popular export promotion capital goods epcg scheme more fle. Zero duty epcg scheme allows import of capital goods for preproduction, production and post production including completely knocked down semi knocked downthereof as well as computer software systems at zero customs duty, subject to an export obligation equivalent to 6. As per the scheme, an applicant intending to regularize the case has to pay customs duty and interest not exceeding the customs duty portion and provide evidence. Epcg scheme epcg 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 in 8 years reckoned from. From april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors. Annual supplement 20 2014 to the foreign trade policy. Amendments to remove the preexport conditions for the items mentioned against sions e121, e122, e123, e124, e127 and e128.
Epcg is a zero duty scheme which allows the import of capital goods such as machinery for preproduction, production and post production of export items. Post export epcg duty credit scrips scheme and certain other changes related to foreign trade policy 200914 reg. During the last announcement on 5th june, 2012, a new post export epcg scheme was also announced which was notified on 18 february, 20 by the cbec. Offline mode facility for des and epcg schemes has been introduced. The epcg scheme provides for in addition, a specific eo of 75% of normal export obligation for export of green technology products. Sep 29, 2015 introduction epcg scheme was one of the exportpromotion initiatives launched by the government in the early 90s. Epcg scheme epcg 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 in 8 years reckoned. Ministarstvo ekonomije je trebalo postupiti po primjedbama i zakljuccima s javne rasprave. I may be referred for the list of products and countries.
Epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. What are the epcg compliance other than 8 times export obligation a company has to comply if it clears goods under epcg custom. Regulated by the foreign trade development and regulatory act 1992. To be published in part ii, section 3, subsection i of. Epcg scheme zero duty scheme foreign trade policy, 20092014 has harmonized the two versions zero duty and 3% concessional duty of epcg schemes w. This scheme is being expanded to cover more export product groups including marine.
Mlfps is being extended till 31st march 20 for export to usa and eu in. Epcg scheme under this chapter, to the extent they are not inconsistent with the above provisions of zero duty epcg scheme, shall be applicable to the zero duty epcg scheme also. Epcg scheme, while other units are dta units, then the average export obligation in respect of the authorisations issued to the firm company other than debonding unit shall remain unchanged and. To operationalise the changes, notifications on customs and excise sides viz. Page 1 of 36 package scheme of incentives 20 government of maharashtra industries, energy and labour department government resolution no psi 20 cr 54 ind8 mantralaya, mumbai 400 032. However, zero duty epcg scheme will be available for handicraft exports under chapters 5, 44, 68, 97. Import under epcg scheme shall be subject to an export obligation eo which shall be equivalent to the amount of duty saved and the time reckoned from the date of authorisation. Postexport epcg duty credit scrip scheme announced last year in the annual supplement of the foreign trade policy, has been brought into force.
Commissioner of customs exports, mumbai ii 20 tiol712cestatmum, the tribunal held that the benefits of the export promotion capital goods epcg scheme will not be available to an exporter if the imported item is covered under a different classification other than the one indicated in the epcg. Thursday, a day after the dgft, under the commerce ministry, put the company on the denied entry list following the nonfulfilment of export obligations under the export promotion capital goods epcg scheme, the telecom operator had said that it was working with the department to get its name removed from the list. Export promotion capital goods scheme presentation exports. Pending eodc cases where vehicles imported under epcg scheme were not registered as commercialtourist vehiclereference policy circular dated 07. Government of india ministry of finance, department of revenue central board of excise and customs new delhi, dated the 6 th march, 20 to. Export promotion capital goods scheme presentation. The scheme also provides for post export epcg duty credit scrip s which are available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme. This is net of accumulated losses and miscellaneous and deferred expenditure, to the extent not written off. Epcg scheme allows the import of capital goods for preproduction, production and post production at zero custom duty. Public notices directorate general of foreign trade. Exim policy the foreign trade of india is guided by the export import policy of govt.
The import duty on capital goods like all other items was high during that period, inflating the cost of capital goods nearly 50%, so the government allowed exporters to import capital goods at only 25% import duty. Duty exemption scheme and epcg scheme for indian exports 16 may 20. April 20 epcg scheme export promotion capital goods the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Javna rasprava je rezultirala brojnim primjedbama na dokument. So, the cash outlay under project import regulations will be more and the noncenvatable duty component will also be higher by 0. If you continue browsing the site, you agree to the use of cookies on this website. Extra products included in the scope of benefits under fps 8. Procedure for surrender of export obligation under epcg sche. Amnesty scheme to regularize export obligation default cases.
There will be no export obligation under project import regulations, whereas under epcg scheme, export obligation will be imposed. The scheme allows import of capital goods for pre production, production and post production including ckdskd 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. In other words, for new applicants there is now only either zero duty epcg or postexport epcg. Epcg scheme allows import of capital goods for pre production, production and post production including ckd skd thereof as well as computer software systems at 3% customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 8 years reckoned from authorisation issuedate. In a major decision, we have decided not only to extend the zero duty epcg scheme beyond march 20, but also merge it with 3% epcg scheme. Export promotion capital goods scheme presentation free download as powerpoint presentation. Epcg scheme export promotion capital goods scheme is provided to the exporters by government of india. The scheme allows import of capital goods for pre production, production and post production including ckdskd 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. Export promotion capital goods epcg scheme subject to fulfillment of the conditions specified in the said notification. Incentive available under focus product scheme fps raised from 1. Custom provision relaxed for submission of eodc in epcg. 2 of the foreign trade policy, 20092014, the central government hereby notifies the foreign trade.
Procedure for closure of cases of default in export. Zero duty export promotion capital goods epcg scheme 2. Post export epcg duty credit scrip scheme prior to 18. Export promotion capital goods epcg scheme gktoday. Zero duty export promotion capital goods epcg scheme government has decided to harmonize zero duty epcg and 3% epcg scheme into one scheme which. Export obligation under epcg scheme made more flexible. Exim policy contain various policy decission with respect to import and export from the country. Epcg schemes for authorizations issued prior to 18. Procedure for closure of cases of default in export obligation under a duty exemption. There are around 5000 products so far covered at 8 digit level. Based on the request of all stakeholders, government has decided to harmonize zero duty epcg and 3% epcg scheme into one scheme which will be a zero duty epcg scheme. It is necessary to know and understand various incentive schemes currently available so that exporters can derive advantage.
Enhancement in registered quantity for export of sugar. It is prepared and announced by the central government. Minister of commerce, industry and textiles release of annual. Mumbai export incentives are granted from time to time in order to achieve competitiveness in pricing for export markets. Zero duty epcg scheme which had come to an end on 32012 has now been extended up tp 3 20, for continued technological upgradation of export sectorsunits. An application for grant of an authorisation may be madeby registered office or head office or a branch office or manufacturing unit of an eligible.