EPCG scheme component import exemption preserves duty relief for components supplied to zero duty licence holders subject to licence and bond conditions. Components imported by a manufacturer for manufacture of capital goods to be supplied to a zero duty EPCG licence holder are exempt from customs duty and additional duty when imported under a licence specifying description, quantity and value of components and capital goods; the importer must comply with Export and Import Policy conditions, execute a bond securing use and supply obligations, maintain accounts of components consumed, produce a customs certificate of supply within a prescribed period, and pay duties on demand in case of non compliance.