How does Export Promotion Capital Goods Scheme facilitate the import of capital goods for producing quality goods and services to enhance Indian Export Competitiveness ?

The objective of the Export Promotion Capital Goods (EPCG) Scheme is to facilitate import of capital goods for producing quality goods and services to enhance India's export competitiveness. EPCG Scheme provides for following: EPCG scheme allows import of capital goods for pre-production, production and post production at Zero customs duty. Alternatively, the Authorization holder may also procure Capital Goods from indigenous sources. Capital goods for the purpose of the EPCG scheme shall include: Capital Goods including in Completely Knocked down (CKD)/ Semi- Knocked Down (SKD) conditions thereof; Computer software systems; Spares, moulds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and Catalysts for initial charge plus one subsequent charge. Import of capital goods for Project Imports notified by Central Board of Excise and Customs is also permitted under EPCG Scheme. Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duty saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation. Authorisation shall be valid for import for 18 months from the date of issue of Authorisation. Revalidation of EPCG Authorisation shall not be permitted. In case countervailing duty (CVD) is paid in cash on imports under EPCG, incidence of CVD would not be taken for computation of net duty saved, provided CENVAT is not availed. Second hand capital goods shall not be permitted to be imported under EPCG Scheme. Authorisation under EPCG Scheme shall not be issued for import of any Capital Goods (including Captive plants and Power Generator Sets of any kind) for Export of electrical energy (power), Supply of electrical energy (power) under deemed exports, Use of power (energy) in their own unit, and Supply/export of electricity transmission services. Import of items which are restricted for import shall be permitted under EPCG Scheme only after approval from EXIM Facilitation Committee (EFC) at DGFT Headquarters. If the goods proposed to be exported under EPCG authorization are restricted for export, the EPCG authorization shall be issued only after approval for issuance of export authorization from EXIM Facilitation Committee at DGFT Headquarters.