DGFT
Can you buy capital goods in India under EPCG and reduce your export obligation? Understand the Indigenous Purchase route before choosing your sourcing option.
This video covers the EPCG Indigenous Purchase route, allowing eligible exporters to source capital goods from Indian manufacturers instead of importing them. It explains how an invalidation letter or Advance Release Order (ARO) is used for domestic procurement and outlines eligibility requirements. The discussion highlights the 25% reduction in specific export obligation for qualifying indigenous purchases under the Foreign Trade Policy 2023. It also covers supplier coordination, deemed export benefits, installation requirements, export obligation blocks, EODC documentation, and possible amendments to existing EPCG authorizations. Exporters can understand the key process steps and considerations before choosing domestic sourcing rather direct import.
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