This is Scheme which enables an importer/Exporter (being an export- oriented business) to import capital goods at zero rates of customs duty.
Export Promotion Capital Goods are capital goods used in the production of goods which are exported to other countries. It includes machinery as well as spares. Hence, to qualify as Export Promotion Capital Goods, the commodity manufactured in India must be exported outside India.
Further, Second- hand capital goods may also be imported without any restrictions on age under the EPCG scheme.
EPCG is intended for promoting exports and the Indian government with the help of this scheme offers incentives and financial support to the exporters.