What is EPCG – Meaning, Benefits & Purpose citrusfreight.com

The Export Promotion Capital Goods (EPCG) scheme is an initiative by the Indian government designed to facilitate the import of capital goods for producing high-quality goods and services and to enhance India\\\’s export competitiveness. Here are some key points about the EPCG scheme:

1. **Objective**: The primary aim is to encourage the import of capital goods for production, thereby improving the quality and quantity of exports from India.

2. **Eligibility**: Exporters, including manufacturer exporters, merchant exporters, and service providers, are eligible to apply for the EPCG scheme.

3. **Concessions**: Under the EPCG scheme, importers can bring in capital goods at zero or reduced customs duty, subject to an export obligation.

4. **Export Obligation**: Beneficiaries of the EPCG scheme must commit to exporting goods worth six times the duty saved on the capital goods within six years from the date of issue of the authorization.

5. **Coverage**: The scheme covers various capital goods, such as machinery, equipment, and related spare parts, required for producing goods or rendering services.

6. **Authorization**: Importers need to obtain an EPCG authorization from the Directorate General of Foreign Trade (DGFT) to avail of the benefits.

7. **Technological Upgradation**: The scheme also aims to encourage technological upgradation of the Indian export sector, thus enhancing productivity and competitiveness in the global market.

The EPCG scheme is part of India\\\’s Foreign Trade Policy and plays a crucial role in supporting the country\\\’s export-oriented industries.