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Export promotion Capital Goods Scheme: Capital goods both new and second hand, may be imported under the Export promotion Capital Goods (EPCG) Scheme. The import of second hand capital goods under the scheme shall be subject to such conditions as prescribed in the policy. Computer systems may also be imported under the EPCG scheme. Capital goods including spares upto 20% of the CIF value of the capital goods may be imported at a concessional rate of customs duty subject to an export obligation to be fulfilled over a period of time. Under EPCG scheme, capital goods for the manufacture of goods and for providing services, can be Imported at zero duty or 10% duty against an obligation to export four times of CIF value over 5 years and six times of CIF value over 8 years respectively. Import of Capital goods for farm sector may be allowed at zero duty against obligation to export six times the CIF value on FOB basis over six years, if the import of capital goods is of Rs.5 crores or more.
Uses or importance to economy: 1. Production: suitable production, functions are adopted to meet the market demand. In the absence of marketing research, production wil
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OBJECTIVES After studying this unit, you should be able to : 1. Explain the need for procedural formalities of export incentives 2. Describe the process of claiming dut
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Commercial Dimension : From the point of view of an exporter, a transaction is complete as soon as the importer either pays for the bill of exchange on its presentation or he unde
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