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TMI BlogCentral Government hereby notifies the Chapter 5 of the Foreign Trade Policy, 2009-2014.X X X X Extracts X X X X X X X X Extracts X X X X ..... ns (Zero Duty and 3% Concessional Duty) of EPCG Schemes. This shall come into force w.e.f. 18th April, 2013. The text of Chapter 5 pertaining to Export Promotion Capital Goods (EPCG) Scheme is annexed (6 pages). Effect of Notification: This version of Chapter 5 of the Foreign Trade Policy deals with policy provisions for Export Promotion Capital Goods (EPCG) Scheme. This will replace the existing version with immediate effect. (Anup K. Pujari) Director General of Foreign Trade E-mail: [email protected] (Issued from F. No. 18/03/AM-14/P-5) Annexure CHAPTER 5 EXPORT PROMOTION CAPITAL GOODS(EPCG) SCHEME 5.1 Zero Duty EPCG Scheme (a) Zero duty EPCG scheme allows import of capital goods (including CKD/SKD thereof as well as computer softwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed in para 5.1 above (for import of capital goods), to be fulfilled in 6 years, reckoned from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 10% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 10% of the book value of the plant and machinery. (b) Provision of Para 5.2A will not be applicable for import of spares in respect of capital goods sourced indigenously. (c) Spares in respect of CG imported under EPCG or imported otherwise can be imported under para 5.1 (d) without a limit (of % ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:- (i) Exports by users of the common service, to be counted towards fulfilment of EO of the CSP shall (i) contain the EPCG Authorization details of the CSP in the respective Shipping bills and (ii) concerned RA must be informed about the details of the Users prior to such export; (ii) Such exports will not count towards fulfilment of other specific export obligations; and (iii) Bank Guarantee (BG) shall be equivalent to the duty saved. BG can be given by CSP or by any one of the users or a combination thereof, at the option of the CSP. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also be counted towards fulfilment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP. (g) Royalty payments received by the Authorization Holder in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. (h) Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for EO discharge. 5.5.1 Provision for BIFR units (a) Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR, may be allowed EO extension, as per rehabilitation package prepared by operating agency and approved by BIFR / Rehabilitation Department of State Government, upto 9 years if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligation imposed on earlier EPCG Authorization(s). (c) EO would be re-fixed such that (i) total EO shall be sum total of 6 times of duty saved of earlier EPCG and the new one, and (ii) EOP is 6 years from EPCG authorization issue-date under this Para. (d) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant. (e) Capital Goods to be imported must be new and technologically superior to earlier CG (to be certified by Chartered Engineer). 5.9 Incentive for early EO fulfilment With a view to accelerate exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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