Allow second-hand equipment under EPCG: PHD Chamber

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SME Times News Bureau | 03 Nov, 2014
In order to promote Prime Minister Narendra Modi's 'Make in India' campaign, the apex industry body - PHD Chamber of Commerce and Industry has sought that second-hand equipment be allowed under export promotion capital goods (EPCG) as it will promote exports of made in India products.

In a statement issued in New Delhi on Monday, the President of the Chamber Sharad Jaipuria also demanded that domestic procurement of equipment under EPCG should be given encouragement by reducing EO upto 50 percent.

Urging the government to consider the aforesaid suggestions of the PHD Chamber in its forthcoming new foreign trade policy (FTP), the Chamber argued that the EPCG scheme needs to be broad base with a pro active approach so that it succeeds in vigorously promoting the Make in India campaign.

Export promotion could be undertaken by undertaking promotional measures of service exports which should be given equal importance. For example, served from India scheme should be made transferable even to lesser extent and service tax be allowed to be debited in SFIS, pointed out Mr. Jaipuria.

Similarly, exemption of excise duty be allowed on domestic procurement under EPCG, rather than refund procedure and imported spares be permitted for domestically procured equipment under EPCG scheme with duty drawback under AIR be allowed for deemed exports.

The Chamber has also hoped that the new FTP which is likely to be unveiled sometime in the month should have provisions and stipulations so that some potential countries like Vietnam, Russia, Tanzania, Kenya, South Africa and Brazil could be added on the focus market scheme list.