Special schemes and simplification of trade regulations are necessary to enable Indian businesses to export their goods to international markets. This will strengthen the economy and foster strong bonds with other nations. The government of India has recognised the potential and challenges in export activities and has taken the right call. The country has introduced the EPCG scheme to elevate the country’s trade potential. An EPCG licence provides exporters with a financial waiver by reducing import fees.
This blog details everything there is to know regarding government initiatives to strengthen and make exporting easier. It gives the readers a roadmap for businesses to maximise the benefits of these initiatives while also giving them an edge over their competitors in the international markets.
What is the Export Promotion Capital Goods (EPCG) Scheme?
The EPCG Scheme is a government initiative that south africa phone number list is specifically designed to promote export rates and give incentives and financial assistance to exporters.
The registration process for the EPCG License with the customs authority includes several steps. The exporter needs to apply to the Directorate General of Foreign Trade (DGFT) with the necessary documents. Upon approval, the exporter can import goods without actually paying the duty.
EPCG is a promotion scheme extremely crucial in the country’s export sector and it aims to eliminate the challenges of infrastructure, minimise transportation costs, and foster a good exporting environment. It aims at diversification and increased competitiveness in the global arena.
Eligibility Criteria and Documentation Requirements
To register for the EPCG Scheme, you must meet the eligibility criteria given below.
- You should hold a valid Import Export Code (IEC) provided by the Director General of Foreign Trade (DGFT).
- You should not be present on the Negative List of Exporters and the caution list of the RBI (Reserve Bank of India).
- You must have a turnover of Rs. 1 crore in the previous year through exports.
- You must have a minimum remaining export obligation equivalent to the duty levied on capital goods imported under this scheme.
The documents needed to register for the EPCG Scheme include the following:
- DGFT Digital Signature and Import Export Code (IEC Code)
- Registration-cum-membership Certificate (RCMV) and GST certification (if applicable)
- Udyog Aadhar/SSI/MSME/IEM/ Industrial License
- Purchase order
- ANF-5A (Application) and Fee for the official government application
- Duty saved amount statement
- Necessary Declarations
- Appendix 5A and Appendix 5B
Capital Goods Eligible for Import under the EPCG Scheme
Eligibility Registration Process These include buildings, equipment, machinery, tools, and vehicles. Capital goods include the following:
- Buildings
- Machines
- Equipment
- Vehicles
- Tools
This sector has a multiplier effect and is bearing on the development of the user industries as it is the source of their input. Under the EPCG Scheme, manufacturers can import capital goods for pre-production and post-production of goods without the duty levied on them.
The ability to avoid the payment of duties on the if your company doesn’t have a marketing strategy, why? import of capital goods is subjected to the fulfillment of export value to more than six times of duty saved on the import of capital goods. Eligibility Registration Process It must occur within six years from the issuance date of authorisation.
Analysis of Government Incentives and Benefits
- Remission of Duties and Taxes on Exported products (RoDTEP) and Merchandise Exports from India Scheme (MEIS): The MEIS Scheme was mainly designed to offset the ill effects of the trade conditions globally and also promote the exporting of goods giving duty credit scrip to exporters. It was antarctica business directory later replaced by the RoDTEP Scheme.
