EPCG Scheme exemption permits zero customs duty on capital goods subject to export obligation, bond and installation requirements. Specified capital goods, CKD/SKD kits and related spares are exempted from basic customs duty, integrated tax and compensation cess under the EPCG Scheme subject to a valid EPCG authorisation registered at the port of import, production of the authorisation at clearance, execution of a bond or bank guarantee securing fulfilment of an export obligation measured on FOB basis linked to duty saved, prohibition on disposal until the obligation is met, installation and use certification within prescribed periods, and use of designated ports/ICDs/LCSs or SEZs.