Central Government hereby notifies the Chapter 5 of the Foreign Trade Policy, 2009-2014.

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....14 harmonizing the two versions (Zero Duty and 3% Concessional Duty) of EPCG Schemes. This shall come into force w.e.f. 18th April, 2013. The text of Chapter 5 pertaining to Export Promotion Capital Goods (EPCG) Scheme is annexed (6 pages). Effect of Notification: This version of Chapter 5 of the Foreign Trade Policy deals with policy provisions for Export Promotion Capital Goods (EPCG) Scheme. This will replace the existing version with immediate effect.   (Anup K. Pujari) Director General of Foreign Trade E-mail: [email protected] (Issued from F. No. 18/03/AM-14/P-5) Annexure CHAPTER 5 EXPORT PROMOTION CAPITAL GOODS(EPCG) SCHEME 5.1 Zero Duty EPCG Scheme (a)       &nbsp....

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....itioned spares), moulds, dies, jigs, fixtures, tools, and refractory for initial lining; for existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the export obligation prescribed in para 5.1 above (for import of capital goods), to be fulfilled in 6 years, reckoned from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 10% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 10%....

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....ers manufacturer exporters with or without supporting manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers. (b) Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated / certified as a Common Service Provider (CSP) by the DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:-                     (i) Exports by users of the common service, to be counted towards  fulfilment of EO of the CSP shall (i....

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.... exports based on arithmetic mean of export performance in the last five years instead of three years. (c)  In case of indigenous sourcing of Capital Goods, specific EO shall be 10% less than the EO stipulated in Para 5.1 above. (d) Shipments under Advance Authorization, DFRC, DFIA, or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfilment of EO under EPCG Scheme. (e) EO can also be fulfilled by the supply of ITA-I items to DTA, provided realization is in free foreign exchange. (f) Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d), (f), & (j) of FTP shall also be counted towards fulfilment of export obligation, alongwith usual benefi....

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....d EOU as provided in Para 6.9 (a) of FTP. 5.7 Fixation of Export Obligation (EO) In case of direct imports, EO shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, EO shall be reckoned with reference to notional Customs duties saved on FOR value. 5.8 Technological Upgradation of existing EPCG machinery EPCG Authorization holders can opt for 'Technological Upgradation' of existing capital goods imported under EPCG Authorization(s). Conditions governing are as under: (a) Minimum time period for applying for 'Technological Upgradation' is 4 years from earlier EPCG Authorization issue-date. (b) Minimum exports made must be 50% of total export obligation imposed on earlier EPCG Authorizati....