The VCT can accomplish the same intake charge dilution as the EGR. When it advances, it increases the overlap into the exhaust phase which causes exhaust to be sucked into the intake. This is a much better way to meet the NOx standard than piping dirty exhaust through all the tubes and valving of an EGR system.
Plus, when you put on the Tune, the cam timing is optimised for performance and no longer does the over advancing thing resulting in better running and mileage. The lack of EGR was a big reason I got the SVTF.