To avail of 0% customs duty, an exporter has to export 6 times of the amount saved on the duty of the raw materials. Take a look at the numbersĪn exporter holding an EGCP certificate is allowed to import goods required to manufacture products and export them at a custom duty of 0-3%. The EPCG Scheme aims to improvise and enhance India’s competitiveness and presence in the manufacturing sector. The EPCG Scheme facilitates the Import of Capital Goods/Machinery for manufacturing goods and services of high quality. The Government of India (GOI), considering the issues faced by the importers and exporters, issued the EPCG Scheme which allows the import of capital goods at zero customs duty. This functionality had an unfavorable impact on the competitiveness and quality of manufacturing industries. The higher the price of machinery used to be, the higher was the custom duty. The scheme is also termed the zero-duty EPCG Scheme.īusinessmen generally compromised with the quality of the goods because of the heavy custom duties levied on the import of capital machinery for production requirements. The capital goods can be utilized/consumed for various stages such as production, pre-production, and post-production of goods. The Export Promotion Capital Goods (EPCG) Scheme is a duty-free ( zero customs duty) Import of Capital Goods/ Machinery for manufacturing export products.
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