About Export Promotion Capital Goods Scheme:
- It is a trade promotion scheme implemented by the government of India.
- It allows the duty-free import of capital goods for the purpose of export production in India.
- Objective: To facilitate import of capital goods for producing quality goods and services and enhance India's manufacturing competitiveness.
- The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) and is governed by the Foreign Trade Policy of India.
- Features:
- EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty.
- It covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
- Second-hand goods of any nature will not be permitted under the EPCG scheme.
