EPCG for Manufacturers

Scheme allows import of capital goods for preproduction, production and post-production at Zero customs duty.

Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Import of capital goods shall be subject to Actual User condition till export obligation is completed.

Capital goods for the purpose of the EPCG scheme shall include:

(i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof;

(ii) Spares, moulds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and

(iii) Catalysts for initial charge plus one subsequent charge.

EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers. Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods in the factory / premises of the supporting manufacturer (s).

In case of any change in supporting manufacturer (s) the RA shall intimate such change to jurisdictional Central Excise Authority of existing as well as changed supporting manufacturer (s) and the Customs at port of registration of Authorisation.

With a view to accelerating exports, in cases where Authorisation holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified, remaining export obligation shall be condoned and the Authorisation redeemed by RA concerned.

However no benefit under para 5.21 of HBP shall be permitted where incentive for early EO fulfilment has been availed.

Achievements

  • Direct association as Advisor in the export and import of more than Rs.9,000/- Crores per annum.
  • International FCPA compliant.
  • Consulting more than 150 MNC's, Indian Corporations, PSU's, Import & Export Houses.

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