Older valid export promotion schemes 142 chapter 24 special economic zones 144 1. The exports made up to 31 march 2015 and scrips applied for during the same period will be governed by the provisions of sfis. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account. Import under epcg authorisation scheme not be eligible for exemption from payment of antidumping duty.
Export obligation under epcg scheme reduced to 75% to promote domestic capital goods manufacturing. Foreign trade policy 1 st april, 2015 31 st march, 2020 government of india ministry of commerce and industry department of commerce. As on date 5012 tariff lines are eligible for rewards under meis. Verification and monitoring related to aa, dfia and epcg. Export promotion capital goods scheme epcg in case of import of capital goods under epcg scheme, export obligation of six times of duty saved is required to be met. List of agencies authorised to issue certificates of origin for sapta and asia pacific trade agreement apta list of agencies authorised to issue certificates of origin non preferential. Export promotion capital goods scheme epcg under ftp 20152020. Mar 22, 2018 in a notification, the directorate general of foreign trade dgft said that exemption from integrated tax and compensation cess under advance authorisation scheme and epcg scheme of foreign trade policy 2015 20 is extended up to october 1, 2018. The scheme allows import of capital goods for pre production, production and post production including ckdskd thereof as well as computer software systems at 5% customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme to be fulfilled over a period of 8 years reckoned from.
Epcg license redemption procedure check list of documents. Foreign trade policy directorate general of foreign trade. Foreign trade policy 1 st april, 2015 31 st march, 2020 updated upto 30 06 2015 government of india. Foreign trade policy permitting import of goods at zero customs. Discontinuation of physical copy of advanced epcg authorisation procurement from sezs. An application for grant of an authorisation may be madeby registered office or head office or a branch office or manufacturing unit of an eligible. Such scrip should be one issued underchapter 3 excluding shis, sfis and aiis scrips in terms of ftp 200914 or chapter 3 of ftp 2015 20 or be a postexport epcg duty remission scheme scrip. The import duty on capital goods like all other items was high during that period, inflating the cost of capital goods nearly 50%, so the government allowed exporters to import capital goods at only 25% import duty. In the gst regime, merchant exporters are required to either pay igst and claim refund for the same. Specific export obligation under epcg scheme, in case capital goods are procured from. Export oriented units eous, electronics hardware technology parks ehtps, software technology parks stps and biotechnology parks btps quality complaints and trade disputes. Scheme and 5 f list of capital goods not permitted permitted subject to specific conditions for import under epcg scheme of ftp 201520.
Higher reward under meis for labour incentive sectors and the products with high domestic content and more. Facility for suo moto payment of customs duty in case of bona fide default in export obligation under the advance epcg authorisations. Conversion of eou relocated sez units to dta unit under epcg scheme a an eou a relocated sez unit, while converting to a dta unit, may apply for an epcg authorisation alongwith documents prescribed. Many indian exporters approached the delhi high court last week against the government for not extending the benefits of epcg export promotion capital goods scheme to goods and services tax regime. Epcg, an export promotion scheme launched by dgft in its foreign trade policy 201520 promotes import of capital goods to enhance indias. Export promotion capital goods epcg scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issue date. Simply is permit import of capital goods,spare parts, accessories at zero duty with a condition that importer need to export goods of. Epcg scheme epcg scheme allows import of capital goods for pre production, production and post production including ckd skd thereof as well as computer software systems at 5% customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme to be fulfilled in 8 years reckoned from authorisation issue date in case of. Procedure to be followed for import under deecepcg scheme. Know about epcg scheme and epcg license apply iec code. The epcg scheme provides for in addition, a specific eo of 75% of normal export obligation for export of green technology products. May 14, 2014 export promotion capital goods epcg scheme also covers a service provider who is designated certified as a common service provider csp by the dgft.
Epcg scheme allows the import of capital goods for preproduction, production and post production at zero custom duty. Exemption from payment of igst under advance authorisation. The import duty on capital goods like all other items was high during that period, inflating the cost of capital goods nearly 50%, so the government allowed exporters to import capital goods at. Policy relating to epcg scheme is given in chapter 5 of ftp.
Epcg scheme under new foreign trade policy 201520 ftp 2015. The debit shall only be in respect of goods that are permitted to be imported under the relevant scrip. List of whogmp, haccp and seicmm level ii and above certification agencies. Anf 5b application for redemption of epcg authorisation. Discontinuation of physical copy of advancedepcg authorisation procurement from sezs. Apr 21, 2020 epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. Action on default in export obligation under the advance or. Common service providers in these areas shall be entitled for epcg scheme. General of foreign trade which allows for the import of goods for preproduction, production and postproduction at 0 % duty which is subject to an export obligation of six times of the duty which is saved on an import. Verification and monitoring related to aa, dfia and epcg scheme 142 12. Capital goods imported under epcg scheme for physical exports are also exempt from whole of the integrated tax and compensation cess leviable thereon under the sub. The foreign trade policy of the govt for the years 2015 2020 has been framed in a manner to provide incentives to exporters of goods as well as exporters of service. The excess exports done towards the average export obligation fulfilment of an epcg authorization during. Click here to read about epcg scheme under foreign trade policy 201520.
Dec 01, 2018 epcg is a very beneficial export promotion scheme through which capital goods required for export production is allowed duty free. To facilitate import of capital goods for producing quality goods and services and enhance indias manufacturing competitiveness, export promotion capital goods scheme under the foreign trade policy is for manufacturer exporters with or without supporting manufacturer s, merchant exporters tied to supporting manufacturer s and service providers. Comm min notifies exemption from igst, compensation. Export promotion capital goods epcg scheme also covers a service provider who is designated certified as a common service provider csp by the dgft, department of commerce or state industrial infrastructural corporation in a town of export excellence subject to provisions and conditions of foreign trade policy 2015 2020. It has been observed that significant time is being taken in assessment of bills of entry from date of filing in cases where the bills of entry are filed under deecepcg schemes. The scheme also provides for post export epcg duty credit scrips which are available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme. Exim policy or foreign trade policy 2015 2020 highlights. Complete analysis of export promotion capital goods epcg scheme. Dgft hand book of procedures foreign trade procedure wef 0104 2015 5. Apr 22, 20 from april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors.
Epcg scheme chapter 5 directorate general of foreign trade. Epcg scheme is regulated by the ministry of commerce under the directorate. Export promotion capital goods epcg scheme also covers a service provider who is designated certified as a common service provider csp by the dgft, department of commerce or state industrial infrastructural corporation in a town of export excellence subject to provisions and conditions of foreign trade policy 20152020. The procedure may be adopted by an ah who has obtained acknowledgement from the concerned regional authority of its application for regularization of bona fide default in export. Procedure to be followed for import under deecepcg scheme reg. We wish to inform you that the oo dgft has issued public notice no. Ftp 2015 20 provides a framework for increasing exports of goods and services as well as generation of employment and. Chapter 5 export promotion capital goods epcg scheme. Epcg scheme in terms of chapter 5 of the foreign trade policy permitting import of goods at zero customs duty. F manufacture has the same meaning as defined in clause f of section 2 of the central excise act, 1944 1 of 1944. Capital goods imported under epcg authorisation for physical exports are also exempt from igst and compensation cess upto i only, 01. The objective of the epcg scheme is to facilitate import of capital goods for. Epcg is a zero duty scheme which allows the import of capital goods such as machinery for preproduction, production and post production of export items.
It allows import of capital goods for preproduction, production and postproduction including ckdskd thereof as well as computer software systems at zero% customs duty, subject to an export obligation. Foreign trade policy 1 st april, 2015 31 st march, 2020 government of india ministry of commerce and industry. Export obligation under epcg scheme made more flexible. Certain general provisions relating to export promotion schemes 141 11. The directorate general of foreign trade vide notification no. Export oriented units eous, electronics hardware technology parks ehtps, software technology parks stps and biotechnology parks btps quality complaints and. Export promotion capital goods scheme epcg under ftp. Export promotion capital goods epcg scheme the zero duty epcg scheme is available to exporters of electronic products. Epcg scheme latest breaking news, pictures, videos, and special reports from the economic times. The exporters claimed that some of the services that were earlier allowed under the epcg scheme were discontinued under the gst regime.
The term epcg is abbreviation of the export promotion capital good scheme. May 22, 2018 in a move that will come as a relief to exporters, the government has decided to make the rules for meeting of export obligation under the popular export promotion capital goods epcg scheme more. Notification of ftp 201520 shall be governed by provisions of paragraph 5. Export promotion capital goods scheme to import at 0. Import under epcg authorisation scheme not be eligible for exemption from payment of antidumping duty, safeguard duty and transitional product specific safeguard duty. About the epcg scheme in ftp 2015 2020 the objective of the epcg scheme is to facilitate import of capital goods for producing quality goods and services to enhance indias export competitiveness. The purpose of this representation is to humbly request for reinstating benefits under export promotion capital goods epcg scheme to capital goods acquired on lease in the extant foreign trade policy 2015 2020 as was available under the foreign trade policy 20092014. Action on default in export obligation under the advance.
Epcg scheme the epcg scheme given benefit of saving import duty to against completing targeted export of goods. Indian customs tariff notification 16 2015,regarding implementation of epcg scheme under ftp 2015 2020,indian customs tariff notification no. Application form for issuance of epcg post export epcg authorization. To enable support to indian industry and exporters. Aug 22, 2009 4 every epcg licence holder shall maintain for a period of 3 years from the date of redemption, a true and proper account of the exportssupplies made and services rendered towards fulfillment of export obligation under the scheme. Epcg scheme know about export promotion capital goods. Export promotion capital goods epcg scheme in terms of chapter 5 of the. Under duty drawback scheme relief of customs and central excise duties suffered on the inputs used in the manufacture of export product is allowed to exporters. Exim policy or foreign trade policy 2015 2020 highlights by dgft and speech of commerce minister smt. May 30, 2014 export promotion capital goods scheme 1. Dear members, the oo directorate general of foreign trade, new delhi has issued public notice no. Highlights of the foreign trade policy 2015 2020 government of india department of commerce ministry of commerce and industry. Exports by users of the common service, to be counted towards fulfillment of eo of the csp.
Epcg scheme was one of the exportpromotion initiatives launched by the government in the early 90s. Eximkey india dgft, customs, excise, export import policy. Export promotion capital goods epcg scheme gktoday. Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to enhance indias export. Export promotion capital goods epcg scheme in terms of chapter 5 of the foreign trade policy permitting import of goods at zero customs duty. In a move that will come as a relief to exporters, the government has decided to make the rules for meeting of export obligation under the popular export promotion capital goods epcg scheme. New foreign trade policy chapter 5 export promotion capital goods epcg scheme and eligibility conditions for import of capital goods and export obligation and indigenous sourcing of capital goods and benefits to domestic supplier and technological upgradation of existing epcg machinery with incentives for fast track companies.
The reward ratescountry coverage of 2228 items were amended. Form of affidavit for obtaining duplicate copy of licences authorisations. Appendices 20152020 directorate general of foreign trade. The directorate general of foreign trade dgft on december 18, 2018 has issued the list of capital goods not permitted permitted for imports under the epcg scheme and made amendment in appendix 5f of the foreign trade policy ftp 2015 20, notified vide dgfts public notice no. Goods and service tax igst and compensation cess exemption under. Trade policy of india 201520 ftp 201520 foreign trade policy 201520. Application form for merchandise exports from india scheme meis.
Foreign trade policy 2015 20 an analysis of ftp proposals. Highlights of the foreign trade policy ftp 2015 2020 april 1, 2015 in brief the honble commerce and industry minister has introduced the foreign trade policy ftp 2015. Chapter 5 export promotion capital goods epcg scheme policy 5. Foreign trade policy 2015 20 and other schemes provide promotional measures to boost indias exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. Simply is permit import of capital goods,spare parts, accessories at zero duty with a condition that importer need to export goods of value of six time of duty saved at time of import. Advance authorisation, epcg and eou scheme upto 31. Export obligation under epcg scheme made more flexible the. Exporters want benefits of capital goods scheme under. No objection certificate should be produced from the. Reduced export obligation eo for domestic procurement under epcg scheme. From april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors. Consequently the envisaged revenue outgo under the scheme has increased from rs.
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