Duty-free capital goods import linked to export obligation reinstated and post-import licences available; exporters must fulfil ongoing export commitments.
The EPCG framework allows import of capital goods at nil duty under a pre-import licence in return for an export obligation equal to six times the duty saved to be discharged within six years; alternatively a concessional reduced-duty pre-import option carries an export obligation of eight times the duty saved within eight years. A post-import variant issues a duty scrip equivalent to duty paid, usable for future imports. The nil-duty route excludes the status-house incentive scrip and requires exporters to compare projected benefits before electing the scheme. (AI Summary)