RAS question
For how many years is the reduced customs duty benefit available under SPMEPCI?
Correct answer: (B) 5 years.
Under SPMEPCI, the reduced 15% customs duty benefit on eligible CBU imports is available for 5 years from the Application Approval Date.
Explanation
SPMEPCI links the customs-duty concession to approved applicants under the electric passenger-car manufacturing scheme. The PIB release says approved applicants may import Completely Built-in Units of e-4W, subject to the minimum CIF value condition, at a reduced customs duty of 15% for 5 years from the Application Approval Date. That timing is the key: the benefit period is counted from approval of the application, not from a later sale date or a general scheme announcement. The scheme uses this concession to attract global EV manufacturers while requiring investment and domestic manufacturing commitments, so the customs-duty window is a defined incentive period rather than an open-ended import benefit.
Why the other options are wrong
- (A) Three years appears in the scheme context for investment and commencement-related requirements, but the reduced customs-duty benefit itself runs for 5 years from the Application Approval Date.
- (C) The cited PIB release gives 5 years for the reduced 15% customs-duty benefit and does not provide any 7-year customs-duty window.
- (D) Ten years is not the benefit period stated for SPMEPCI customs-duty concessions; the release fixes the concession period at 5 years.
Concept
This tests government industrial-policy incentives, especially how customs-duty concessions are tied to investment schemes. It recurs in RAS because economy questions often ask the precise duration, eligibility, or condition attached to a current Central Government scheme.