Who are eligible for EPCG scheme?

Who are eligible for EPCG scheme?

1 Who are eligible to avail of the EPCG Scheme? A. The manufacturers, Exporters and Merchant Exporters are eligible to avail of this Scheme.

What are the capital goods allowed under EPCG scheme?

Capital Goods allowed under EPCG Scheme The capital goods allowed under Export Promotion Capital Goods Scheme shall include spares (including reconditioned/ refurbished), fixtures, jigs, tool, moulds and dies. Further, second-hand capital goods may also be imported without any restriction on age under the EPCG Scheme.

How the EPCG scheme promotes the domestic capital goods manufacturing industry?

The concessional 3% duty EPCG Scheme allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof as well as computer software systems) at 3% customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to …

What is the EPCG scheme?

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue- …

Who is the largest trading partner of India?

Largest trading partners with India

What is duty drawback scheme in export?

The Duty Drawback Scheme allows exporters to get a refund on customs duty paid on imported goods, where those goods are: to be treated, processed, or incorporated in other goods for export, or. are exported unused since importation.

Which country is the largest trading partner of India in 2020?

China
India’s imports from China declined marginally, but its share of total imports increased. Hong Kong, Bangladesh and Singapore were the other top markets for India last fiscal year. China’s share in India’s export basket rose to 7.29% in FY21 from 5.3% the year before.

How is duty drawback amount calculated?

For a quick calculation, this estimate can be derived by looking at the duty paid on imported merchandise that is then exported, or by starting with your exports and working backwards to the duty paid on the imported merchandise. Annual duty paid * % of merchandise that is exported * 99% = Drawback Potential.

What is DBK in export?

Under Duty Drawback Scheme (DBK) relief of Customs and Central Excise Duties suffered on the inputs/components used in the manufacture of goods exported is allowed to Exporters. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account.

Which is a precondition for the EPCG scheme?

An EPCG authorisation holder can opt for technological upgradation of capital goods that have been procured under the scheme. Fulfilling the EO is a basic precondition under the EPCG scheme. Heavy exporters are naturally better placed to fulfil this obligation and benefit from the EPCG.

How does CSP and EPCG help exporters?

The CSP will provide bank guarantee equal to the customs duty saved, against the export goods. Exporters of electronic goods can also avail of EPCG benefits. An EPCG authorisation holder can source capital goods from a domestic manufacturer and claim deemed export benefit under the FTP.

Who can avail of EPCG license export obligation?

Who can Avails EPCG Scheme: What is EPCG License Export Obligation Export obligation for EPCG license can be completed in INR as well as Foreign currency within 6 years from the date of EPCG authorization issued by DGFT .

Who is eligible for indigenous sourcing in EPCG?

31.4. Indigenous Sourcing of Capital Goods and Benefits to Domestic Supplier A person holding an EPCG Authorization may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit. Such domestic sourcing shall also be permitted from EOUs and these supplies