Epcg scheme

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sushant (Querist)
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06 January 2015 we purchase machine from out of india under EPCG Scheme without duty paid now we sale our material out of india without duty under epcg scheme.now iwant to know that what is the procedure and how it maintain in accounts.pls reply me step by step.

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Sushant Panda

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 January 2015 The Export Promotion Capital Goods (EPCG) scheme was one of the several export-promotion initiatives launched by the Government in the early '90s. The basic purpose of the scheme was to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market.

EPCG authorization holder shall export either directly or through third party(s). If a merchant exporter is EPCG authorization holder, name of supporting manufacturer shall also be indicated on shipping bills.At the time of export, EPCG authorization number and date shall be endorsed on shipping bills which are proposed to be presented towards discharge of export obligation.

For Zero Duty EPCG Scheme
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Period from the date of issue of Authorization

Block of 1st to 4th :50%
Block of 5th and 6th:50%
(Minimum export obligation to be fulfilled)

Reduced EO for North East Region
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For units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, Specific EO shall be 25% of the stipulated EO as applicable. There shall be no change in average EO i.e. EO under the scheme shall be, over and above, the average level of exports achieved by the exporter in the preceding three licensing years for the same and similar products within the overall EO period including extended period, if any;

Incentive for Fast Track Companies
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To incentivize fast track companies with a view to accelerate exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified, remaining export obligation shall be condoned and the Authorization redeemed by RA concerned. However no benefits under Para 5.12 of HBP v1 shall be available in such cases.

Export under EPCG scheme shall also be entitled for benefits under Chapter 4 of FTP. The above are only the major provisions concerning EPCG scheme and for more specific provisions members may refer to the Current Foreign Trade Policy and Procedures