Capital Goods (CG), including jigs, fixtures, dies, moulds and spares may be imported at 5% Customs duty subject to an Export Obligation equivalent to 5 times the CIF value of capital goods on FOB basis or 4 times the CIF value of capital goods on NFE basis to be fulfilled over a period of 8 years reckoned from the date of issuance of the licence. However imports of spares under this scheme would be restricted to 20% of the CIF value of the capital goods.

(Above last sentence is corrected vide Ntf. No. 37(RE-01), Dt. 2-11-2001)

For calculation of NFE, the provision of paragraph 12.6 of the Policy shall apply.

(Above Para has been corrected vide NOTIFICATION No: 23(RE-2001) 1997-2002, Dt. 01/08/2001.)