A scheme under which exporters are given incentives to import some consumer goods which are not allo...........

Economic Affairs Foreign Trade - Trends and Policy

A scheme under which exporters are given incentives to import some consumer goods which are not allowed to be imported in the normal course is know as:

EPCG scheme

Duty Entitlement Pass Book Scheme

Advance Licensing Scheme

Special Import License Scheme

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Explanation:

Export Promotion Capital Goods scheme is a zero duty scheme which allows the import of capital goods such as machinery for preproduction, production and post production of export items. But it is not a free lunch. The duty free import by an exporter has to be paid back in the form of an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date. This means that if an exporter imports a tool making machine and saves an import duty of Rs. 100, he will have make the tools and export tools worth minimum Rs. 600 within 6 years.