Consider the following statement about Export Promotion Capital Goods (EPCG) norms:

I. Govt has announced a one-time relaxation with respect to maintaining the average export obligation under the EPCG scheme.

II. Under the scheme, imports of capital goods are allowed duty free, subject to an export obligation.

III. The latest relaxation will be available for hotel, healthcare, and educational sectors.

Which of the above statement is/are correct?

Solution

The government has announced a one-time relaxation with respect to maintaining the average export obligation under the Export Promotion Capital Goods (EPCG) scheme. Under the scheme, imports of capital goods are allowed duty free, subject to an export obligation.The latest relaxation will be available for hotel, healthcare, and educational sectors. This relief will help the hotel, healthcare and educational sectors to cope with the negative impact of the pandemic on their export activities. These sectors will also have the option to extend the export obligation period for a longer duration without having to pay any additional fees. Learn Along: Ministry of Commerce and Industry                                 Union Minister: Piyush Goyal EPCG Scheme- EPCG (Export Promotion Capital Goods) Scheme helps in facilitating the import of capital goods for manufacturing quality goods and to augment the competitiveness of India’s export. It enables the import of capital goods that are used in the pre-production, production, and post-production without the payment of customs duty.