Capital goods (CG), including jigs, fixtures, dies, moulds may be imported at a concessional rate of customs duty subject to an export obligation to be fulfilled over a period of time as per table given below. In addition spares upto 20% of the CIF value of the capital goods may also be imported under the scheme. The period for fulfilment of the export obligation shall be reckoned from the date of issue of the import licence. For calculation of NFE, the provision of paragraph 12.6 of the Policy shall apply.

1. Zero duty in case CIF value is Rs. 1 Cr. or more for electronics, food processing, textiles, plastic leather, sports goods, gem & Jewellery sectors and produce and products of agriculture, aquaculture, animal Husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, Sericulture.
   

   
   
   

Bio-technology sector, the following sub -sectors of Engineering sectors;

Machine tools, parts & accessories thereof; automotive components and accessories; bicycle parts and accessories; handtools, cutting and small tools; castings and forgings (ferrous and non-ferrous) all sorts; pumps, electric motors and parts thereof, fasteners, all types (ferrous and non-ferrous); bright bars and shafting; scientific and surgical instruments and the following sub sectors of chemicals;

Drug and drug intermediates, Dyes and Dyes intermediate, inorganic chemicals, organic chemicals

b.Zero duty in case CIF value is Rs.10 lakhs or more for Software sector

Under the scheme, manufacturer exporters, merchant exporters tied to supporting manufacturer (s) and service providers are eligible to import capital goods. For Agricultural exports, import of equipment may be allowed provided ownership of these equipments rest with the EPCG Scheme licence holder,such equipments are not sold or leased and list of places where the equipments are to be located is made available to the jurisdictional Assistant Commissioner of Customs and Excise.

If the licence issued under the zero duty scheme has actually been utilised for import of a value in excess of or less than 10% of the CIF value of the licence, license shall be deemed to have been enhanced/ reduced by that proportion. Export obligation shall accordingly be enhanced/ reduced as per the actual utilisation of the licence.