Epcg

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Nandakumar T S (Querist)
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22 July 2015 Dear Expert,

Good Morning!!

I represent a Pharma R&D Center in Bangalore set up recently and in the process of starting activity for development projects for South East Asian, US, Australian and European regulated and non regulated markets thus infusing foreign revenue into India from such projects.

In order to execute such projects facility requires to import critical analytical and formulation lab equipments from the US, Europe,Singapore and Japan ports of origin, orders which are majorly placed in USD, CHF, EUROS currency.

Request your expedited advise and suggestions on procedure to participate in EPCG scheme, obtain license, compliance, obligations wrt Excise and Customs.

Regards
Nandakumar

Nandakumar T S

Nandakumar T S (Querist)
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22 July 2015 Awaiting Expert Opinion.
Please treat this on TOP PRIORITY

Regards
Nandakumar

Nandakumar T S

Nandakumar T S (Querist)
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23 July 2015 Attention Experts

Your attention & advise is requested ASAP.

Regards
Nandakumar

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 Certainly! The Export Promotion Capital Goods (EPCG) scheme is a beneficial scheme under the Ministry of Commerce and Industry in India, aimed at facilitating imports of capital goods for pre-production, production, and post-production activities, including exports. Here’s a concise guide on how your Pharma R&D Center in Bangalore can participate in the EPCG scheme:

### EPCG Scheme Overview:
The EPCG scheme allows import of capital goods at concessional customs duty rates, subject to an export obligation to be fulfilled over a certain period. The main objective is to encourage Indian entities to upgrade technology, modernize their production facilities, and enhance export competitiveness.

### Procedure to Participate in EPCG Scheme:

1. **Eligibility Criteria**:
- Your Pharma R&D Center should be a registered entity under Indian laws.
- The center must have an IEC (Import Export Code) issued by the Directorate General of Foreign Trade (DGFT).

2. **Application for EPCG License**:
- Apply online through the DGFT’s Electronic Commerce of India (ECI) portal.
- Submit the EPCG application along with required documents, including details of the projected export and production plans.

3. **License Issuance**:
- Upon scrutiny of the application, DGFT will issue an EPCG license specifying the value, quantity, and description of the capital goods allowed to be imported.

4. **Fulfilling Export Obligation**:
- Under the EPCG scheme, you are required to fulfill a specific export obligation, generally calculated as a multiple (commonly 6 times) of the duty saved on the imported capital goods, over a period of 6 years from the date of issue of the EPCG authorization.

5. **Importing Capital Goods**:
- After obtaining the EPCG license, import the specified capital goods within a stipulated period (usually 6 months) from the date of issue of the authorization.

6. **Customs Duty and Excise Obligations**:
- Avail exemption or concessional rate of customs duty on import of capital goods under EPCG authorization.
- No excise duty is applicable on the import of capital goods under the EPCG scheme.

7. **Compliance and Reporting**:
- Maintain proper records of imports, exports, and production related to the EPCG scheme.
- Submit periodical reports to DGFT and Customs authorities regarding fulfillment of export obligations.

### Obligations and Considerations:
- **Export Obligation**: Ensure timely fulfillment of the export obligation as specified in the EPCG license.
- **Operational Requirements**: Maintain proper accounting and records to facilitate audits and compliance checks.
- **Renewals and Amendments**: Apply for amendments or renewals of EPCG licenses as per requirements.
- **Monitoring and Reporting**: Regularly monitor progress towards fulfilling export obligations and report to DGFT.

### Conclusion:
Participating in the EPCG scheme can significantly benefit your Pharma R&D Center by reducing the cost of importing critical equipment and enhancing competitiveness in global markets. It’s advisable to consult with a qualified customs consultant or DGFT authorized agent to navigate through specific requirements and ensure compliance with all regulations.

If you need further assistance or have specific queries, feel free to ask!