EPCG scheme allows import of capital goods for pre production, production and post production (including CKD / SKD thereof as well as computer software systems) at 3% Customs Duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorisation issue-date. In case of agro units, and units in cottage or tiny sector,import of capital goods at 3% Customs duty shall be allowed subject to fulfillment ofexport obligation equivalent to 6 times of duty saved on capital goods imported, in 12 years from Authorisation issue- date.

For SSI units, import of capital goods at 3% Customs duty shall be allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods, in 8 years from Authorisation issue-date, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs.50 lakhs and total investment in plant and machinery after such imports does not exceed SSI limit. However, in respect of EPCG Authorisations with a duty saved amount of Rs. 100 crores or more, export obligation shall be fulfilled in 12 years. In case CVD is paid in cash on imports under EPCG, incidence of CVD would not be taken for computation of net duty saved, provided the same is notCENVATed.

Capital goods shall include spares (including refurbished / reconditioned spares), tools, jigs, fixtures, dies and moulds.