NEW DELHI, June 5 � With an aim to promote exports from the north-eastern States, the Centre today reduced compliance burden to one-fourth for exporters to avail the popular EPCG scheme to import capital goods at very low customs duty, reports PTI.
�We have taken a decision to reduce the export obligation under the EPCG scheme to 25 per cent of the normal export obligation and this facility will be applicable to north-eastern States and Sikkim,� Commerce Minister Anand Sharma said, while releasing the annual supplement to the Foreign Trade Policy. This, he said, is being done to promote �manufacturing activity and generating employment in the north-eastern States�.
The export Promotion Capital Goods (EPCG) is an export promotion scheme under which an exporter can import certain amount of capital goods at either zero or three per cent customs duty, for upgrading technology related with exports.
However, to avail the scheme, the exporter has to meet a pre-determined export obligation over a certain period.
Besides the EPCG, Sharma also announced incentives to promote exports from customs stations in the region. �We are also going to provide additional incentive of one per cent of FOB (Free On Board) value of exports for specified products through all Land Customs Stations of north-eastern region,� Sharma said.
This benefit will be in addition to any other advantages that may be available under the Foreign Trade Policy in respect of these exports, the supplement said.
Also, Myanmar has been included in the list of Focused Market Scheme (FMS), which aims to offset high freight cost to certain select international countries with a view to make India more competitive in those markets.
