Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue

The authorisation holder of the EPCG is allowed to import capital goods at a customs duty of 0% or 3%. The 0% customs duty requires the authorisation holder to undertake export obligation amounting to 6 times of the amount saved on duty on the capital goods.

The Duty Drawback Scheme allows exporters to get a refund on customs duty paid on imported goods, where those goods are: to be treated, processed, or incorporated in other goods for export, or. are exported unused since importation

The Export Promotion Capital Goods (EPCG) scheme was one of the several export-promotion initiatives launched by the government in the early ’90s