(Please refer Cus Cir No.24/2002 date 6/5/2002 for Changes made in EPCG Scheme vide Exim Policy 2002-07)

PARA 5.1

The scheme allows import of new capital goods including CKD/SKD thereof as well as computer software systems at 5% Customs duty subject to an export obligation equivalent to 5 times CIF value of capital goods to be fulfilled over a period of 8 years reckoned from the date of issuance of licence over a period of 8 years.

However, in respect of EPCG licences for Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.

The capital goods shall include jigs, fixtures, dies and moulds. Spares may also be imported under the scheme upto 20% of the CIF value of capital goods. EPCG licence may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the licence holder.