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Commerce Ministry relaxes EPCG Norms

Published on April 16, 2022
Current Context: Ministry of Commerce has eased Export Promotion Capital Goods norms to facilitate ease of doing business. EPCG norms are meant to augment the export potential of traders in India.
Commerce Ministry relaxes EPCG Norms
  • What are the EPCG Norms?
    • Under the Scheme, imports of capital goods (so that they can be used for the production of finished products) are allowed duty-free, subject to an export obligation.
    • Here the Export Obligation means that the Exporter has to export Finished Goods worth 6 times of actual duty saved in value terms in 6 years.
  • What are the changes made?
  1. Annual reporting of the Export Obligation has been extended from April 30 to June 30 for every Financial year. In case of delay, a fine of 5,000 rupees will be imposed.
  2. Export Obligation extended to 6 months from date of expiry of obligation, instead of earlier 90 days. Therefore, it gives more time to the exporter to trade and meet the obligation. In case of delay, it would attract a penalty of 10,000 rupees.


Q.1 Under the new norms released for EPCG, What is the time window extended to meet Export Obligation?
a. 3 months
b. 6 months
c. 9 months
d. No extension given
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