TaxTMI 
TaxTMI 
Export Promotion Capital Goods (EPCG) Scheme
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....viable thereon under the sub-section (7) and subsection (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as provided in the notification issued by Department of Revenue. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include: (i) Capital Goods as defined in Chapter 11 including in CKD/SKD condition thereof; (ii) Computer systems and software which are a part of the Capital Goods being imported; (iii) Spares, moulds, dies, jigs, fixtures, tools & refractories; and (iv) Catalysts for initial charge plus one subsequent charg....
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....s in the factory / premises of the supporting manufacturer(s). In case of any change in supporting manufacturer(s), the RA shall intimate such change to jurisdictional Customs Authority of existing as well as changed supporting manufacturer(s) and the Customs at port of registration of Authorisation. (b) Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is certified as a Common Service Provider (CSP) by the DGFT - HQs, Department of Commerce in a Town of Export Excellence or Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions: (i) Common utility services like providing Electricit....
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....gh third party(ies). (c) EO under the scheme shall be, over and above, the average level of exports achieved by the applicant in the preceding three licensing years for the same and similar products within the overall EO period including extended period, if any; except for categories mentioned in paragraph 5.12(a). Such average would be the arithmetic mean of export performance in the preceding three licensing years for same and similar products. The Average Export Obligation (AEO) shall be fulfilled every financial year, till export obligation is completed. Exports/supplies made over and above AEO shall only be considered for fulfillment of Export Obligation. (d) In case of indigenous sourcing of Capital Goods, specific EO shall be 2....
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....PCG authorizations and having been admitted under the provisions of Insolvency and Bankruptcy Code 2016 for commencement of insolvency proceedings and in respect of whom the resolution plan has been approved under Section 31 of IBC 2016 by Adjudicating Authority may be permitted to relief, concessions and waivers in accordance with the resolution plan approved/ finalised by Adjudicating Authority/Appellate Authorities as the case may be. 5.06 LUT/Bond/BG in case of Agro units LUT/Bond or 15% BG, as applicable, may be furnished for EPCG Authorisation granted to units in Agri-Export Zones provided EPCG Authorisation is taken for export of primary agricultural product(s) notified or their value added variants. 5.07 Indigenous Sourcing....
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....if any, as stipulated in Para 5.04(c). The list of Green Technology Products is given in Para 5.26 of HBP. 5.11 Reduced EO for North East Region and UTs of Jammu & Kashmir and Ladakh. For manufacturing units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir and Ladakh, specific EO shall be 25% of the EO, as stipulated in Para 5.01(b). There shall be no change in average EO imposed, if any, as stipulated in Para 5.04(c). 5.12 Exemption from maintenance of average export obligation (a) In case of export of goods relating to the following, the EPCG Authorisation holder shall not be required to maintain average export obligation. (i) Handicrafts, (ii) Handl....