Government announces certain export promotion schemes from Time to time like EPCG – Export Promotion of Capital Goods. An EPCG license holder can import production machinery from abroad at Zero Import Duty, subject to an export obligation equivalent to 6 times of Duties, taxes, cess saved on Capital goods to be fulfilled in 6 years time.
This is to facilitate production of quality goods & improving manufacturing competitiveness & export potential
This is another export promotion scheme. An exporter can import components duty free to manufacture his product & export the same. Say, better quality imported electrical lamps in an automobile for vehicles being exported to Developed countries to match their quality expectations.
