The Directorate General of Foreign Trade (DGFT) recently announced the extension for the annual filing of reports required under the Export Promotion Capital Goods (EPCG) scheme for FY 22-23 till the 30th September 2022.
The Export Promotion Capital Goods scheme was initiated in the early 90s. The idea behind it is that it will enhance India’s manufacturing competitiveness with the world and improve the equality of goods the service. The Scheme doesn’t levy import duties on capital goods that are in pre-production, production, and post-production. However, this exemption is based on the condition that the importer will produce a value that is 6x the duty saved on the imports of such capital goods that have taken place in the past six years. The exporter can also avail of capital goods from the domestic market after complying with Foreign Trade Policy (FTP).