The period of time permitted for the fulfillment of the export obligation under EPCG is

A. 5 years

B. 8 years

C. 7 years

D. 10 years

Answer: Option B

Solution(By Examveda Team)

The period of time permitted for the fulfillment of the export obligation under EPCG is 8 years. Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants