EPCG\nScheme or Export Promotion Capital Goods Scheme aids in facilitating the import\nof capital goods for manufacturing quality products and to enhance the\ncompetitiveness of India’s Export. EPCG scheme permits the import of capital\ngoods that are used in the pre-production, production & post-production\nwithout customs duty charge.<\/p>\n\n\n\n
In simple words, EPCG Scheme can be explained as Duty-Free or Zero Customs Duty<\/em><\/strong> import of capital goods or machinery for the manufacture of products meant for Export. We already know that the heavy custom duties companies have to pay on the capital goods or machinery imported for the production requirements, due to which businessmen generally don’t import them and compromise with the quality of the products. The higher the machinery price used to be, the higher the custom duty was and this functionality started affecting the competitiveness & quality of manufacturing industries deeply. So to improve this situation, the Indian Government introduced this EPCG Scheme where it was allowed or permitted to import capital goods at zero customs duty. The primary objective of the EPCG Scheme is to improve the competitiveness of India in the manufacturing sector. <\/p>\n\n\n\n