Author : Anonymous
( Author )
21 June 2012
I want to know about EPCG scheme, how it's work and we can take benefit.
we are manufacturer of iron product, we purchase raw material form all India and export to USA, Canada, UAE, ect. and also sales in India, so please tell me about that EPCG scheme benefit
or can 100% exporter take this benefit also
if it is possible then please send me mail also
RAMESH KUMAR VERMA
( Expert )
21 June 2012
Para 5.1 of foreign trade policy says "
Zero duty 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 zero Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date.
The scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals & allied products, leather & leather products, paper & paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, plywood and allied products, marine products, sports goods and toys subject to exclusions as provided in HBP Vol. I.
Validity period for import of capital goods and provision for extension in export obligation period will be as separately provided in the HBP Vol. I. All other provisions pertaining to concessional 3% duty 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.
as per para 5.5
However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s) / service(s), despite exemptions in Para 5.7.6 of HBP v1.
Shipments under Advance Authorization, DFRC,DFIA, DEPB or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.
Export obligation can also be fulfilled by the supply ITA-I items to DTA, provided realization is in free foreign exchange.
Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d) (f), (g) & (j) of FTP shall also be counted towards fulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge.