Re-Export of Capital Goods Imported Under EPCG Scheme

5.16

Capital Goods imported under the EPCG scheme, which are found defective or unfit for use, may be re-exported back to the foreign supplier within three years from the date of payment of duty on importation thereof with the permission of the Regional/Customs Authority. However, in such cases the Authorisation holder shall fulfill the balance export obligation under the Authorisation from export of alternate products/ services or the Authorisation holder shall pay duty equivalent to a proportionate amount of duty saved to the unfulfilled export obligation under the Authorisation.