Who are eligible for EPCG License?

Q. 1 Who are eligible to avail of the EPCG Scheme? A. The manufacturers, Exporters and Merchant Exporters are eligible to avail of this Scheme.

What is not eligible under EPCG scheme?

Such domestic manufacturer shall be eligible for deemed export benefit under FTP. -License under this scheme shall not be issued for the import of any capital goods for Electricity Generations or Supply plants. -Import of second hand capital goods are not permitted under the EPCG scheme.

What is the use of EPCG Licence?

Export Promotion Capital Goods (EPCG) License, as the name suggests, is intended to act as a stimulus for exports. It allows import of capital goods at 3% Customs Duty subject to the condition that an Export Obligation of eight times the duty saved is to be fulfilled within 8 years of Authorization issue date.

Which of goods is allowed under EPCG scheme?

Capital Goods allowed under EPCG Scheme The capital goods allowed under Export Promotion Capital Goods Scheme shall include spares (including reconditioned/ refurbished), fixtures, jigs, tool, moulds and dies. Further, second-hand capital goods may also be imported without any restriction on age under the EPCG Scheme.

How is EPCG duty calculated?

The specific export obligation is calculated as 6 times of duty saved value i.e. 8,26,560 *6 =49,59,360 INR to be completed in 6 years.

Is second hand capital goods allowed under EPCG?

Second hand capital goods, without any restriction on age, may also be imported under the EPCG Scheme.

Is EPCG License transferable?

As per Para 5.4 of FTP, import under EPCG Scheme is subject to ‘Actual User Condition” according to which transfer of capital goods before completion of export obligation is not allowed.

Is EPCG license transferable?

What is export obligation under EPCG?

In the EPCG Scheme, the Export Obligation period is of 6 years. The export obligation is equivalent to six times of duty saved on capital goods to be fulfilled in six years from the issuance date of the EPCG License.

Which type of capital goods Cannot be imported under EPCG scheme?

Capital Goods that are not permitted under EPCG scheme Captive Plants. Power Generation sets of any kind. Supply of Electrical Energy (Power) under deemed exports. Export of Electrical Energy (Power)

What is post export EPCG?

What is Post Export EPCG Duty Credit Scrip? Post Export EPCG Duty Credit scrip(s) shall be available to exporters who intend to import capital goods on full payment of applicable duties, taxes and cess in cash and choose to opt for this scheme.

How do I get my DGFT EPCG license?

EPCG Online Application Procedure

  1. Step 1: Visit the DGFT Official website.
  2. Step 2: Log in with DGFT Digital Signature Certificate.
  3. Step 3: Create a New File.
  4. Step 4: Fill initial mandatory details.
  5. Step 5: Filling Industrial Registration, Export House & RCMC Details.
  6. Step 6: Fill the Factory Address.