What does EPCG mean in INTERNATIONAL BUSINESS
Export Promotion Capital Goods (EPCG) are the capital goods used in India for the purpose of export promotion. The Indian government offers an EPCG license to incentivize and promote exports, which helps to increase and sustain foreign exchange. This guide will answer some important questions about EPCG licenses.
EPCG meaning in International Business in Business
EPCG mostly used in an acronym International Business in Category Business that means Export Promotion Capital Goods
Shorthand: EPCG,
Full Form: Export Promotion Capital Goods
For more information of "Export Promotion Capital Goods", see the section below.
Essential Questions and Answers on Export Promotion Capital Goods in "BUSINESS»INTBUSINESS"
What is Export Promotion Capital Goods (EPCG)?
Export Promotion Capital Goods (EPCG) are the capital goods used in India for the purpose of export promotion. An EPCG license allows an exporting entity to acquire capital goods at a reduced or zero customs duties rate, which can be used for the production and export of products or services.
Who can apply for an EPCG License?
Any company registered under the Indian Companies Act 1956 with a valid IEC code can apply for an EPCG license. The applicant should have existing manufacturing or trading operations in India and must also meet certain other conditions as mentioned in the Foreign Trade Policy issued by Government of India.
How long does it take to get an EPCG License?
It usually takes 4-6 weeks after submission of application form and required documents to obtain an EPCG license from Government of India depending upon their internal guidelines on grant/issuance of such licenses.
Are there any restrictions on import under this scheme?
Yes, there are certain restrictions like balance period restriction, time bound obligation restrictions etc imposed on import made under this scheme. In addition, prescribed quantity of export needs to be completed within specified time-frame as per Foreign Trade Policy issued by Government every year.
Is there any penalty levied if obligations mandated under EPCG license are not achieved within stipulated time period?
Yes, penalty may be imposed depending upon severity of breach occurred in achieving those mandatory obligations mentioned under respective clause of Foreign Trade Policy issued by government for that particular financial year.
Final Words:
An Export Promotion Capital Goods(EPCG) licence allows companies to import capital goods at concessional duty rates without actual payment of duty while they commit to fulfill certain export obligations over a fixed period of time. This system facilitates easy access to capital goods while encouraging exports from India thus helping the economy grow rapidly.