Trade policy gives incentives to exporters from North East

NEW DELHI: With an aim to promote exports from the North Eastern states, the Centre today reduced compliance burden to one-fourth for exporters to avail the popular EPCG scheme to import capital goods at very low customs duty.

"We have taken a decision to reduce the export obligation under the EPCG scheme to 25 per cent of the normal export obligation and this facility will be applicable to North Eastern states and Sikkim," Commerce Minister Anand Sharma said, while releasing the annual supplement to the Foreign Trade Policy.

This, he said, is being done to promote "manufacturing activity and generating employment in the North Eastern states".

Export Promotion Capital Goods (EPCG) is an export promotion scheme under which an exporter can import certain amount of capital goods at either zero or three per cent customs duty, for upgrading technology related with exports.

However, to avail the scheme, the exporter has to meet a pre-determined export obligation over a certain period.