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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..... n Trade Policy 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 corresp .....

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..... y would make the benefits under 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 .....

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