Epcg scheme

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vivek jain

vivek jain (Querist)
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27 December 2014 WHETHER WE CAN GIVE CAPITAL GOODS PURCHASED UNDER EPCG SCHEME ON RENT.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 December 2014 As per the Foreign Trade Policy 2009-14 amended later time to time in annual supplements, the EPCG Authorization holder is permitted to import capital goods at 0% or 3% Customs duty. Under the 0% duty EPCG Authorization holder is required to undertake export obligation equivalent to 6 times of the duty saved amount on the capital goods imported within a period of 6 years reckoned from the date of issue of Authorization. Under the 3% duty EPCG scheme, the Authorization holder has to fulfill EO equivalent to 8 times of the duty saved amount on the capital goods imported in 8 years.

you can not give the capital goods on rent .

you are advised to approach in your regional Licencing authority write a request letter in this matter.

Regards,

ramesh kumar