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<h1>EPCG scheme allows capital goods imports at 5% duty with export obligations five times CIF value over eight years</h1> The circular explains various duty exemption schemes under the Export Promotion Capital Goods (EPCG) framework introduced in the Exim Policy 2000-2001. The 5% Duty EPCG Scheme allows capital goods imports at 5% basic customs duty with export obligations of five times the CIF value over eight years, applicable to both manufacturers and service providers. Status holders receive full bank guarantee exemption under all EPCG schemes, while other exporters get 50% exemption. The Advance Licence for Physical Exports provides full customs duty exemption on imported goods. The Advance Licence for Deemed Exports replaces the Special Imprest Licence Scheme for domestic supplies. The Duty Free Replenishment Certificate Scheme permits post-export import of inputs based on Standard Input-Output Norms. Re-export of defective goods imported under DEEC and EPCG schemes is now permitted to foreign suppliers in genuine cases.