Regarding payment of 5% customs duty against EPCG licence/Authorisation where the capital goods are procured domestically in terms of para 5.6 of the Foreign Trade Policy

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..... icy GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE DIRECTORATE GENERAL OF FOREIGN TRADE POLICY CIR NO. 14 (RE-2006)/2004-09, DT. 25/07/2006 Attention is invited to para 5.1 of the Foreign Trade Policy which provides for import of capital goods at a concessional rate of 5% customs duty subject to the fulfillment of the applicable corresponding export obligation on .....

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..... der the scheme as prohibited subsidy as per ASCM Agreement. To that extent 5% duty under EPCG Scheme has to be paid even in cases of domestic procurement. 4. It is clarified that 5% applicable customs duty on notional basis shall be charged before EPCG Authorisation is invalidated for direct import and EO shall be calculable at the reduced duty saved amount accordingly. These instructions will be .....

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