New Delhi, March 31: The Exim policy this year has brought in a more liberal Export Promotion Capital Goods Scheme (EPCG), allowing for import of capital goods for pre-production and post-production facilities as well. The export obligation will now be eight times the duty saved.
Import of spares for the upgrades of existing plant and machinery of exporting units has also been permitted and exporters will be permitted to import capital goods that are up to 10 years old.
Existing manufacturer-exporters of infotech hardware will be allowed to fulfil export obligations arising out of import of capital goods even for setting up software units through export of manufactured goods of the same company.
Royalty payments received from abroad and testing charges received in free foreign exchange will be also counted for discharge of export obligation under the EPCG scheme.
A more liberal duty entitlement passbook scheme (DEPB) has been introduced as well to encourage diversification and promote export of new products. Exporters will benefit further as the DEPB rates have been rationalised in line with the general reduction in customs duty.
In the advance licence scheme, input-output norms for 403 items have been notified.
The duty-free replenishment certificate scheme has also been extended to cover deemed exports to provide a boost to domestic manufacturers. The value addition under DFRC scheme has been reduced from 33 per cent to 25 per cent.