New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    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?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 1 & 3 Correct Answer Incorrect Answer
    D All Correct Answer Incorrect Answer
    E None Correct Answer Incorrect Answer

    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.

    Practice Next

    Relevant for Exams: