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of <h1>Government Exempts Certain Capital Goods from Customs Duty Under EPCG Scheme for Manufacturing in Key Industries.</h1> The Central Government exempts certain capital goods, components, and spares imported under the EPCG scheme from customs duty and additional duty beyond 10% as per the EXIM Policy 1997-2002. The exemption applies to goods used in manufacturing specified products or services in industries like leather, textiles, agro-products, tourism, and software. Importers must have a valid EPCG license and fulfill export obligations, typically six times the CIF value, within specified periods. Conditions include bond execution, installation of goods, and periodic reporting. Failure to meet obligations results in duty repayment with interest. Special provisions exist for high-value licenses, sick units, and specific industry sectors.
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