EPCG Guide http://dgftcom.nic.in/ecommerce/epcg/epcgMan.htm

Duty Exemption and Remission Schemes 

Duty exemption schemes enable duty free import of inputs required for export production. Duty exemption schemes consist of: 

• Advance Authorisation scheme 

• Duty Free Import Authorisation (DFIA) scheme A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in export product. Duty Remission Schemes consist of : 

• Duty Entitlement Passbook (DEPB) Scheme 

• Duty Drawback (DBK) Scheme The details of these schemes are available in Chapter-4 of India’s Foreign Trade Policy and Procedures on the website of the Department of Commerce, Ministry of Commerce & Industry

Who can benefit from the EPCG Scheme?

EPCG is however  intended to promote exports and the Government through this scheme provides incentives and other financial assistance to the Exporters. Heavy exporters can also take advantage of this provision but it is ill-advised for those who do not expect to manufacture the  very much or even  intend to sell their produce almost entirely in the domestic market in order  to go ahead for this scheme, as that could lead to  extreme pressure and it would almost become impossible-to-fulfill the  obligations later on. Each business should thus  take this call carefully and also not without a detailed written analysis of the  expected export amount.


Modified Special Incentive Package Scheme(M-SIPS)

To offset disability and attract investments in Electronic manufacturing, Modified Special Incentive Package Scheme (M-SIPS) was notified on 27.7.2012.

The scheme is available for both new projects and expansion projects. The scheme provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing. It also provides for reimbursements of CVD/ excise for capital equipment for the non-SEZ units. For some of the high capital investment projects like fabs, it provides for reimbursement of Central Taxes and Duties. The incentives are provided on reimbursement basis. The incentives were available for 29 electronic verticals. Units all across the manufacturing value chain are covered under the scheme. For each of the product category, an investment threshold is prescribed which an applicant has to incur for getting eligible for incentives. The investment threshold varies from Rs 1 Crore to Rs 5000 Crores depending upon a type of project. The incentives are available for 10 years from the date of approval. 

The M-SIPS require applicants to submit applications with Financial Closure (tied up funds) for the project they propose to execute. The Financial Closure for a project, however, can be given in phases.

As per para 6.1 of M-SIPS notification, to consider the applications under the scheme and to submit it’s recommendations, an Appraisal Committee headed by Additional Secretary , MeitY have been constituted.

The non- refundable application fee which is required to be submitted along with the application form has been separately notified. It varies from Rs 10,000/- for projects costing less than 10 crores to Rs 1,00,000/- for projects costing 10,000 crores and above.

M-SIPS scheme is presently not open to receive applications. All Initial applications which will be received by MeitY till 31.12.2018 will be considered for incentives under M-SIPS. The Nodal Officer is the key contact for all communications relating to M-SIPS. Nodal Officer(M-SIPS) has been appointed. All applications under M-SIPS are required to be submitted