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This query is : Resolved
23 December 2015
ecgc license ?
24 December 2015
EPCG is a term used in India under exports and imports. EPCG means, Export Promotion Capital Goods. EPCG is one of the schemes provided by government of India to importers and exporters to promote exports.
In simple and easy language, EPCG is a scheme related to machinery, machinery parts and similar goods.
You (exporter) are a manufacturer exporter; you would like to import machineries in your factory from foreign country.
government What is ECGC and how does ECGC protect exporters supports exporters who earn foreign currency in various levels of financial assistance, exemption of import duty etc. In this case, the machineries you are importing are used for manufacturing of goods which are required to be exported where in you earn foreign exchange. However, you need to pay good amount at a time and you will get benefit of the imported machineries in coming years only. Apart from other financial assistance for exporters, you can get exemption of 100% import duty amount while importing such machineries. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years. EPCG is a good facility provided to exporters and importers by government on exemption of import duty amount.
How to obtain EPCG AUTHORISATION
****************************************************
The importer has to approach for EPCG license from licensing authority – Director General of Foreign Trade (DGFT). Application for EPCG with necessary supporting documents is filed with DGFT. Based on the amount of import duty exemption, the value addition is fixed up and export obligation has to be fulfilled accordingly. If you could not complete the export obligation in time specified by licensing authority, you may be permitted to get extended the export obligation period for further period of time. However, if you have already finished export obligation, you can sell the manufactured goods locally also in domestic tariff area (DTA).
In simple and easy language, EPCG is a scheme related to machinery, machinery parts and similar goods.
You (exporter) are a manufacturer exporter; you would like to import machineries in your factory from foreign country.
government What is ECGC and how does ECGC protect exporters supports exporters who earn foreign currency in various levels of financial assistance, exemption of import duty etc. In this case, the machineries you are importing are used for manufacturing of goods which are required to be exported where in you earn foreign exchange. However, you need to pay good amount at a time and you will get benefit of the imported machineries in coming years only. Apart from other financial assistance for exporters, you can get exemption of 100% import duty amount while importing such machineries. When obtaining EPCG license from government, you guarantee that you will export required amount or quantity of goods for next 5 years. EPCG is a good facility provided to exporters and importers by government on exemption of import duty amount.
How to obtain EPCG AUTHORISATION
****************************************************
The importer has to approach for EPCG license from licensing authority – Director General of Foreign Trade (DGFT). Application for EPCG with necessary supporting documents is filed with DGFT. Based on the amount of import duty exemption, the value addition is fixed up and export obligation has to be fulfilled accordingly. If you could not complete the export obligation in time specified by licensing authority, you may be permitted to get extended the export obligation period for further period of time. However, if you have already finished export obligation, you can sell the manufactured goods locally also in domestic tariff area (DTA).
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