The Export Promotion Capital Goods (EPCG) Scheme is a duty-free ( zero customs duty) Import of Capital Goods/ Machinery for manufacturing export products. The capital goods can be utilized/consumed for various stages such as production, pre-production, and post-production of goods. The scheme is also termed the zero-duty EPCG Scheme.
Businessmen generally compromised with the quality of the goods because of the heavy custom duties levied on the import of capital machinery for production requirements. The higher the price of machinery used to be, the higher was the custom duty. This functionality had an unfavorable impact on the competitiveness and quality of manufacturing industries.
The Government of India (GOI), considering the issues faced by the importers and exporters, issued the EPCG Scheme which allows the import of capital goods at zero customs duty. The EPCG Scheme facilitates the Import of Capital Goods/Machinery for manufacturing goods and services of high quality.
The EPCG Scheme aims to improvise and enhance India’s competitiveness and presence in the manufacturing sector.