ANNOUNCEMENT 22 May 2018

Carry forward of excess exports are allowed to fulfill average export obligations under the EPCG scheme.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 22 May 2018 | Removal date: 31 Mar 2022

Tax-based export incentive

On 22 May 2018, the Indian Directorate General for Foreign Trade through Public Notice No. 10/2015-20 notified for export obligations under the Export Promotion Capital Goods (EPCG) scheme that the excess Export Obligation (EO) fulfillment in any year over the average EO of the EO period can be used to set off below-average export obligation in any other year.

The EPCG scheme under the Foreign Trade Policy 2015-2020 allows duty-free import of capital goods with the condition to fulfill certain export obligations within a defined period.

On 31 March 2020, the Ministry of Commerce and Industry announced that the existing Foreign Trade Policy, which were to expire on 31 March 2020, will be extended till 31 March 2021. On 31 March 2021, the Policy was extended until 30 September 2021.

On 28 September 2021, the Ministry through Notification No. 33/2015-2020 extended the Foreign Trade Policy until 31 March 2022.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 22 May 2018 | Removal date: 31 Mar 2022

Import tariff

The Public Notice has relaxed the export obligations requirements. With this relaxation the Notice incentivizes entities to import duty-free capital goods under the Export Promotion Capital Goods Scheme.

The EPCG scheme allows duty-free import of capital goods in order to manufacture export goods. Against the duty exemption, the importer has to fulfill certain export obligations in a defined period.

On 31 March 2020, the Ministry of Commerce and Industry announced that the existing Foreign Trade Policy, which were to expire on 31 March 2020, will be extended till 31 March 2021. On 31 March 2021, the Policy was extended until 30 September 2021.

On 28 September 2021, the Ministry through Notification No. 33/2015-2020 extended the Foreign Trade Policy until 31 March 2022.

 
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