License
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).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
