The Director General of Foreign Trade (DGFT) has made domestic sourcing costlier for the holders of Export promotion capital Goods (EPCG) in licenses/authorisations. Under the EPCG scheme, capital goods can be imported at 5.1 per cent duty (including an education cess of 2 per cent) against an export obligation equal to eight times the duty saved, to be fulfilled over a period of 8 years. In some situations, the export obligation can be reduced to six times the duty saved, and the export obligation period extended to 12 years.
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