Question
Briefly explain “export promotion capital goods scheme”.
Solution
The main objective of this scheme is to encourage the import of capital goods for export production. This scheme allows export firms to import capital goods at no or lower rates of customs duties subject to actual user condition and fulfilment of specified export obligations. If the said conditions are fulfiled by the manufacturers, then they can import the capital goods either at zero or concessions rate of import duty. This scheme is especially beneficial to the industrial units interested in modernisation and upgradation of their existing plants.
