What is EPCG? And how it works?

Question

Accepted Answer

EPCG stands for Export Promotion Capital Goods. It is a scheme introduced by the Indian government to promote exports.

EPCG allows import of capital goods at zero or concessional customs duty for the purpose of producing goods for export.
The scheme aims to enhance India's manufacturing capabilities and make Indian products globally competitive.
Under EPCG, an exporter is required to fulfill export obligations within a specified time period.
If the exporter fails to meet the export obligations, they are liable to pay customs duty with interest.
EPCG benefits can be availed by both manufacturers and service providers.
Example: A textile manufacturer can import machinery under EPCG to enhance production capacity and export more goods.

Accepted Answer

The Export Promotion Capital Goods (EPCG) Scheme is a government initiative that allows exporters to import capital goods at a reduced customs duty rate. The scheme is designed to promote exports and make India more competitive in the manufacturing sector

Accepted Answer

EPCG Is export promotional capital goods.

Accepted Answer

EPCG is a term used in India under exports and imports. EPCG means, Export Promotion Capital Goods. EPCG is one of the schemes provided by government of India to importers and exporters to promote exports.