Depreciation calculation for capital goods applies to domestic and imported assets cleared to domestic tariff area. Method for calculating depreciation for capital goods cleared by Free Trade Zone/100% Export Oriented Units to the Domestic Tariff Area permits duty payment on the depreciated value. The Board's method for imported goods applies mutatis mutandis to domestically procured capital goods, using quarterly rates: 4% (first year), 3% (second year), 2.5% (third year), 2% (fourth year and thereafter), subject to a 70% overall cap.