Customs duty exemption for capital equipment under EPCG scheme conditioned on export obligation fulfilment and procedural compliance. Exemption from customs duty and waiver of additional duty is available for capital equipment and specified spare parts imported under the EPCG scheme for the service sector, conditioned on production of a valid EPCG licence, certification of a bond executed under the Export and Import Policy, and a declaration to pay duty on demand if conditions are not complied with; the licensing authority may grant time limited extensions and condone minor shortfalls subject to public notice conditions.