PIB | 21 Jan, 2023
The Centre has announced a one-time relaxation from maintaining
average export obligation and an option to extend the export obligation
period for certain sectors under the Export Promotion Capital Goods
(EPCG) Scheme.
The sectors that are eligible for this relief are the
Hotel, Healthcare, and Educational sectors. For the years 2020-21 and
2021-22, these sectors will not be required to maintain average export
obligation for EPCG authorizations issued to them.
These
sectors will also have the option to extend the export obligation
period for a longer duration, without having to pay any additional fees.
For
EPCG authorizations issued for the Hotel, Healthcare and Educational
sectors, the export obligation period would be extended from the date of
expiry for the duration equivalent to the number of days the export
obligation period falls within February 1, 2020 and March 31, 2022.
This
extension will be granted without payment of composition fees. However,
for EPCG authorizations issued for sectors other than Hotel, Healthcare
and Educational, the export obligation period may be extended for the
number of days the existing export obligation period falls within
February 1, 2020 and July 31, 2021.
This extension will be granted
without payment of composition fees, but with a 5% additional export
obligation in value terms on the balance export obligation as on March
31, 2022.
This
relaxation has been provided in light of the economic slowdown caused
by the COVID-19 pandemic. This relief will help the Hotel, Healthcare
and Educational sectors to cope with the negative impact of the pandemic
on their export activities.
The
Export Promotion Capital Goods (EPCG) scheme is a trade promotion
scheme implemented by the Indian government that allows duty-free import
of capital goods for the purpose of export production in India.
The
scheme aims to encourage the production of goods for export by providing
import duty concessions on capital goods.
The EPCG scheme is
administered by the Directorate General of Foreign Trade (DGFT) and is
governed by the Foreign Trade Policy of India.
