The Schemes under EPCH Schemes

What is 3% EPCS Scheme?

With this 3% EPCS scheme an exporter is allowed to import New Capital goods (CKD/SKD) including computer software systems at 3% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods Imported under the scheme, to be fulfilled over a period of 8 years reckoned from date of issue of License.

Highlights of 3% EPCS Scheme

3 % EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems), subject to an Export Obligation equivalent to 8 times of duty saved to be fulfilled in 8 years from date of issue of Authorization.Under EPCG scheme, manufacturer exporters with or without Supporting manufacturer(s) or vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.

Export Obligation:

Export Obligation needs to be fulfilled by export of goods manufactured or services rendered by the applicant. Shipments under Advance Authorization, DFRC, DFIA, DEPB or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.
Export obligation can also be fulfilled by the supply ITA-I items to DTA, if realization is in free foreign exchange. However, specified deemed exports shall also be counted towards fulfillment of export obligation.

Average Exports:

Export Obligation under the scheme shall be the average level of exports achieved by someone in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any.

What you can expect from us?

We help Exporters in assessing the feasibility of the scheme for exports or domestic supplies, planning for maximum benefits, documentation, application preparations, representation and coordination with DGFT and its offices till issuance of the authorisation. In case of domestic procurement we also take care of getting necessary Invalidations from the authority, and the Refund of Terminal Excise Duty. Finally we would also take up the job of Redemption / Discharge of Export Obligation and closure of the case. Additionally we also undertake matters of Nexus Establishment with EPCG Committee, Clarifications / Relaxations from DGFT, etc.