EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME – is to facilitate import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness.
Capital goods for the purpose of the EPCG scheme shall include:
(i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition
(ii) Computer systems and software which are a part of the Capital Goods
(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories; and
(iv) Catalysts for initial charge plus one subsequent charge.
Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation. Authorisation shall be valid for import for 18 months from the date of issue of Authorisation. Revalidation of EPCG Authorisation shall not be permitted.
Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s).
Where the authorisation holder opts for independent Chartered Engineer‟s certificate, he shall send a copy of the certificate to the jurisdictional Customs Authority for intimation/record.
In case of failure to fulfil export obligation or any other condition of authorisation, authorisation holder shall be liable for action under FT (D&R) Act, 1992, as amended, Orders and Rules made thereunder, provisions of FTP/HBP, Customs Act, 1962, as amended from time to time or any other law in force.
Green Technology Products
The Export Products covered under Paragraph 5.10 of FTP which provides for reduced export obligation of 75% for green technology products are:
(i) Equipment for Solar Energy decentralized and grid connected products,
(ii) Bio-Mass Gassifier,
(iii) Bio-Mass/Waste Boiler,
(iv) Vapour Absorption Chillers,
(v) Waste Heat Boiler,
(vi) Waste Heat Recovery Units,
(vii) Unfired Heat Recovery Steam Generators,
(viii) Wind Turbine,
(ix) Solar Collector and Parts thereof,
(x) Water Treatment Plants,
(xi) Wind Mill, Wind Mill Turbine / Engine,
(xii) Other Generating Sets – Wind powered,
(xiii) Electrically Operated Vehicles – Motor Cars,
(xiv) Electrically Operated Vehicles – Lorries and Trucks,
(xv) Electrically Operated Vehicles – Motor Cycles/Mopeds, and
(xvi) Solar Cells.