Question
Consider the following statements with reference to
‘Export Promotion Capital Goods Scheme’ (EPCG): 1. Manufacturers can import capital goods for pre-production, production and post-production goods without attracting any customs duty. 2. Capital goods are physical assets that a company uses in the production process to manufacture products and services. 3. It 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. Which of the statements given above is/are not correct?Solution
All statements are correct. Manufacturers can import capital goods for pre-production, production and post-production goods without attracting any customs duty. Capital goods are physical assets that a company uses in the production process to manufacture products and services. It 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.
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