EPCG Scheme is to facilitate import of New capital goods for producing quality goods and services to enhance India’s export competitiveness.
Ø EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. The EPCG Authorisation holder has to fulfill an Export Obligation (EO) of “Actual Duty saved x 6 times” to be fulfilled in 6 years from the date of Issue of the Authorisation. This EO shall be over and above the Average Export Obligation.
Ø EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Ø Import of capital goods shall be subject to Actual User condition till EO is completed.
Ø "Capital Goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. It includes packaging machinery and equipment, refrigeration equipment, power generating sets, machine tools, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector.
Objective of FPS is to incentivise export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products.
Exports of notified products (as in Appendix 37D of HBPv1) to all countries (including SEZ units) shall be entitled for Duty Credit scrip equivalent to 2% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards, unless a specific date of export / period is specified by public notice / notification.
However, Special Focus Product(s) /sector(s), covered under Table 2 and Table 5 of Appendix 37D, shall be granted Duty Credit Scrip equivalent to 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards, unless a specific date of export / period is specified by public notice / notification.
Further, Focus Product(s) / sector(s) that are notified under Table 7 of Appendix 37D shall be granted additional Duty Credit Scrip equivalent to 2% of FOB value of exports (in free foreign exchange) over and above the existing rate for that product / sector from the admissible date of export / period specified in the public notice issued to notify the product / sector.
|Sl.No.||PRODUCT CATEGORY||Admissible Date of Export|
|TABLE 1:||FOCUS PRODUCTS||27.8.2009|
|TABLE 2:||SPECIAL FOCUS PRODUCTS||27.8.2009|
|TABLE 3:||MARKET LINKED FOCUS PRODUCTS||27.8.2009|
|TABLE 4:||NEW FOCUS PRODUCTS||27.8.2009|
|NEW SPECIAL FOCUS PRODUCTS||27.8.2009|
|TABLE 6:||NEW MARKET LINKED FOCUS PRODUCTS||27.8.2009|
|TABLE 7:||FOCUS PRODUCT(S) / SECTOR(S) -BONUS BENEFITS||1.4.2010|
|Note1: For exports made from the date of announcement of FTP 2009-2014, the exporters may file claims using this Appendix 37D. For exports prior to that, the exporters may file claims using the Appendix 37D as it existed prior to the date of announcement of the FTP2009-2014. |
Note2: "FPS benefits @2% on export Apparel to EU and USA , as announced by Public Notice No. 156(RE2008)/2004-09 dated 2.3.2009 shall continue till 30.9.2009, as per policy / procedure on FTP 2004-09 (RE2008)"
This scheme is for rewarding the Notified Service exporters companies as well as individuals earning Foreign Exchange in the form of Duty Credit Scrips to encourage export of notified Services from India.
SFIS is discontinued from 31.03.2015. SFIS was granted @10% of the Foreign Exchange earned on the notified services, however it was with Actual User condition. SFIS is not being allowed by RA for Foreign Brands.
SEIS has come into existence from 01.04.2015 and is rewarded @5% / 3% of the Net Foreign Exchange earned for supply of services from India to any other country or Service consumers of any other country. The Duty Credit Scrips & goods imported / domestically procured against them are freely transferable. SEIS is allowed for Foreign Brands.