EPCG duty exemption ties capital goods imports to mandatory export obligations and proportional duty recovery on default. Exemption from basic customs duty and an additional duty cap is granted for capital goods, components and specified spares imported under a valid EPCG licence, subject to production of the licence, execution of a bond to fulfil an export obligation (expressed as a multiple of the CIF value or on Net Foreign Exchange basis), adherence to a blockwise export schedule with periodic reporting, installation and certification of imported capital goods at prescribed premises, minimum import value thresholds, and payment of duties with interest proportionate to any unfulfilled export obligation; limited extensions, condonations and re export of defective goods are permitted under specified conditions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
EPCG duty exemption ties capital goods imports to mandatory export obligations and proportional duty recovery on default.
Exemption from basic customs duty and an additional duty cap is granted for capital goods, components and specified spares imported under a valid EPCG licence, subject to production of the licence, execution of a bond to fulfil an export obligation (expressed as a multiple of the CIF value or on Net Foreign Exchange basis), adherence to a blockwise export schedule with periodic reporting, installation and certification of imported capital goods at prescribed premises, minimum import value thresholds, and payment of duties with interest proportionate to any unfulfilled export obligation; limited extensions, condonations and re export of defective goods are permitted under specified conditions.
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