Duty exemption on capital goods under EPCG scheme subject to export obligation compliance and duty regularisation consequences. Nil customs duty and exemption from additional customs duty beyond a capped rate of ten percent apply to capital goods, components and specified spare parts imported under a valid EPCG licence, subject to production of the licence, execution of a bond securing an export obligation (based on CIF or net foreign exchange multiples), installation and use of the capital goods at the importer's premises, blockwise fulfilment of export obligations over prescribed periods with set-off rules, and duty regularisation with interest for shortfalls or non compliance.