Discontinuation of EPCG Scheme in the FTP

Ref.No.GJEPC/Circular/Members/2021-22
12th January 2022

TO: ALL MEMBERS OF THE COUNCIL

Subject: “Discontinuation of the Export Promotion Capital Goods (EPCG) Scheme

in the Foreign Trade Policy”- reg

Dear All,

The Council is in receipt of communication from Ministry of Commerce & Industry with regards to captioned subject line.

EPCG Scheme allows import of capital goods for pre-production, production and post- production at Zero customs duty and subject to fulfilment of specific export obligation equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years from date of issue of authorization. However, Department of Revenue is of view that EPCG Scheme is hampering growth of domestic capital goods industry and it is in favour of gradually phasing it out.

In view of the above all stakeholders have been invited to share their views in respect of continuation of EPCG scheme. In order to providing the suggestions to DGFT, Members are requested to send their suggestions / reasons for continuation of EPCG Scheme. Request to submit suggestions to council at preetha.shalu@gjepcindia.com before 17th Jan 2022.

Thanking you,

With best regards,

Sd/- SABYASACHI RAY EXECUTIVE DIRECTOR