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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.

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