Scheme allows import of capital goods for preproduction, production and post-production at Zero customs duty.
Alternatively, the Authorization holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Import of capital goods shall be subject to Actual User condition till export obligation is completed.
Capital goods for the purpose of the EPCG scheme shall include:
(i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof;
(ii) Spares, molds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and
(iii) Catalysts for initial charge plus one subsequent charge.
(iv) catalysts for initial charge plus one subsequent charge.
EPCG scheme covers manufacturer exporters with or without supporting manufacturers, merchant exporters tied to supporting manufacturers and service providers. Name of supporting manufacturers shall be endorsed on the EPCG authorization before installation of the capital goods 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 Central Excise Authority of existing as well as changed supporting manufacturer (s) and the Customs at port of registration of Authorization.
With a view to accelerating exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified, remaining export obligation shall be condoned and the Authorization redeemed by RA concerned.
However no benefit under para 5.21 of HBP shall be permitted where incentive for early EO fulfilment has been availed.
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