ANNOUNCEMENT 18 May 2012In May 2012, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
On 18 May 2012, the Indian Ministry of Commerce and Industry clarified that capital coods sourced from Special Economic Zones (SEZ) will be treated as "imported goods". This treatment makes capital goods from SEZs eligible for the Export Promotion Capital Goods (EPCG) scheme.
The EPCG scheme allows the import of capital goods at reduced or zero customs duties when used in the manufacture of export goods. To receive the benefit of lower duties, the importer has to fulfill certain export obligations.