Export Promotion Capital Goods Scheme:
The Directorate General of Foreign Trade (DGFT) has removed the requirement of submitting physical duty payment challans while applying for Export Obligation Discharge Certificates (EODC) under the Advance Authorisation and Export Promotion Capital Goods (EPCG) Schemes.
- It is a trade promotion scheme implemented by the government of India.
- It allows the duty-free import of capital goods for the purpose of export production in India.
- Objective is to facilitate import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness.
- The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) and is governed by the Foreign Trade Policy of India.
- EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty.
- It covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
- Second-hand goods of any nature will not be permitted under the EPCG scheme.
