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    Question

    Consider the following statements with reference to ‘Export Promotion Capital Goods Scheme’ (EPCG):

    1.    Manufacturers can import capital goods for pre-production, production and post-production goods without attracting any customs duty.

    2.    Capital goods are physical assets that a company uses in the production process to manufacture products and services.

    3.    It is a trade promotion scheme implemented by the Indian government that allows duty-free import of capital goods for the purpose of export production in India.

     

    Which of the statements given above is/are not correct?

    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 1 & 3 Correct Answer Incorrect Answer
    D All Correct Answer Incorrect Answer
    E None Correct Answer Incorrect Answer

    Solution

    All statements are correct. Manufacturers can import capital goods for pre-production, production and post-production goods without attracting any customs duty. Capital goods are physical assets that a company uses in the production process to manufacture products and services. It is a trade promotion scheme implemented by the Indian government that allows duty-free import of capital goods for the purpose of export production in India.

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