5% duty under EPCG Scheme - even in cases of domestic procurement.
The DGFT clarifies that,
++ To that extent 5% duty under EPCG Scheme has to be paid even in cases of domestic procurement.
++ 5% applicable customs duty on notional basis shall be charged before EPCG Authorisation is invalidated for direct import and EO shall be calculable at the reduced duty saved amount accordingly.
++ These instructions will be implemented prospectively and shall be applicable in all such cases where Authorisations have to be issued henceforth or where Authorisation/licence has already been issued but invalidation has not been allowed so far
Policy Circular No. Dated: 25.07.2006