Procedures of EPCG scheme now simplified

The Director-General of Foreign Trade (DGFT) has made helpful procedural changes to the Export Promotion Capital Goods (EPCG) scheme.

Under the EPCG scheme, exporters can import capital goods at zero duty against export obligation (EO) of six times the duty saved to be fulfilled in six years. At least, 50 per cent of the EO must be fulfilled within the first block of four years. The provisions allowing EO period extension for the first block and the final six-year period, subject to payment of prescribed fees, required the exporter to apply within a certain period. Many exporters who had failed to