Entrepreneurship Development and Communication Skills

7.3.4.Export Promotion Capital Goods Scheme (EPCG) of Exim Policy 2004-2009 

 

Introduced in the EXIM policy of 1992-97, Export Promotion Capital Goods Scheme(EPCG) enables exporters to import machinery and other capital goods for export production at concessional or no customs duties at all.  This facility is subject to export obligation, i.e., the exporter is required to guarantee exports of certain minimum value, which is in multiple of total value of capital goods imported.

Capital goods imported under EPCG Scheme are subject to actual user condition and the same cannot be transferred / sold till the fulfillment of export obligation specified in the licence.  In order to ensure that the capital goods imported under EPCG Scheme, the licence holder is required to produce certificate from the jurisdictional  Central Excise Authority(CEA) or Chartered Engineer(CE) confirming installation of such capital goods in the declared premises.