What epcg process and obligation

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Accepted Answer

EPCG process refers to the Export Promotion Capital Goods Scheme, which allows import of capital goods at concessional duty for export production.

Under EPCG, an exporter can import capital goods at a reduced duty rate for the purpose of producing goods for export.
The exporter is required to fulfill export obligations within a specified time frame, typically 6 years from the date of issuance of the license.
If the export obligations are not met, the duty saved on the capital goods imported under EPCG must be paid back with interest.
The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) in India.
Examples of capital goods that can be imported under EPCG include machinery, equipment, tools, and technology.