Vidyalelo
Management · Q106

International Finance and Treasury

Graduate and Post Graduate · Management · question 106

Q106

The period of time permitted for the fulfillment of the export obligation under EPCG is

A.
5 years
B.
8 years
Answer
C.
7 years
D.
10 years

Answer: Option B

Solution

Answer: Option B
Solution:
The period of time permitted for the fulfillment of the export obligation under EPCG is 8 years. Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants