New Policy
The scheme allows import of capital goods
for pre production, production and post production (including CKD/SKD thereof
as well as computer software systems) at 5% Customs duty subject to an export
obligation equivalent to 8 times of duty saved on capital goods imported
under EPCG scheme to be fulfilled over a period of 8 years reckoned from the
date of issuance of licence.
However, in respect of EPCG licences with a
CIF value of Rs.100 crore or more, the same export obligation shall be required
to be fulfilled over a period of 12 years.
The capital goods shall
include spares, jigs, fixtures, dies and moulds. EPCG licence may also be
issued for import of components of such capital goods required for assembly or
manufacturer of capital goods by the licence holder.
Second hand
capital goods upto 10 years old may also be imported under the EPCG scheme.
(Please refer Cus Cir
No.24/2002 date 6/5/2002 for Changes made in EPCG Scheme vide Exim Policy
2002-07)
PARA 5.1
The scheme allows import of new capital
goods including CKD/SKD thereof as well as computer software systems at 5%
Customs duty subject to an export obligation equivalent to 5 times CIF value of
capital goods to be fulfilled over a period of 8 years reckoned from the date of
issuance of licence over a period of 8 years.
However, in respect of
EPCG licences for Rs.100 crore or more, the same export obligation shall be
required to be fulfilled over a period of 12 years.
The capital goods
shall include jigs, fixtures, dies and moulds. Spares may also be imported under
the scheme upto 20% of the CIF value of capital goods. EPCG licence may also be
issued for import of components of such capital goods required for assembly or
manufacturer of capital goods by the licence holder.
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