Central Government hereby notifies the Chapter 5 of the Foreign Trade Policy, 2009-2014.
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EPCG Scheme harmonized to permit zero duty capital goods imports subject to export obligations and eligibility conditions.
Notification harmonizes Chapter 5 of the Foreign Trade Policy to consolidate EPCG Scheme variants. The Zero Duty EPCG permits import of capital goods at zero basic customs duty subject to an export obligation calculated as a multiple of duty saved, to be fulfilled within a prescribed period. The chapter prescribes exclusions (Status Holder Incentive interaction, prohibition on second hand goods), computation rules for duty saved, treatment of spares and tooling, project and retail sector coverage, eligibility including CSPs, Actual User condition, EO calculation and discharge mechanisms, technological upgradation rules, post export duty credit scrips, and reduced EO for specified regions and green technology products.