What is the core benefit under EPCG?

Duty-free import of eligible capital goods, subject to meeting export obligations in time.

How is the Export Obligation calculated?

EO equals six times the customs duty saved on the imported capital goods and must be fulfilled within six years.

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Export Promotion Capital Goods (EPCG) Scheme

Name: BookMyCA – AVPM & Associates
Address: 11-K-3, JYOTI NAGAR, Sahakar Marg, Lal Kothi Scheme, Jaipur, Rajasthan, 302015, IN
Telephone: +91-9352296200
Price range: ₹₹
Rating: 4.8

Duty-free import of capital goods against time-bound export obligation to boost competitiveness.

Overview

The EPCG Scheme enables eligible exporters to import capital goods (including spares for pre-production, production, and post-production) at zero customs duty, subject to fulfilling a time-bound Export Obligation (EO). The objective is to facilitate technology upgradation, improve quality, and enhance export competitiveness.

Authorization is granted by the Directorate General of Foreign Trade (DGFT). On approval, the authorization holder can import specified capital goods and must meet export obligations within the prescribed period, failing which duties saved plus interest become payable.

Objectives

Promote exports by enabling access to modern machinery and technology.
Reduce upfront import costs for capital goods to enhance competitiveness.
Encourage efficiency, quality improvement, and capacity expansion in export-oriented units.

Eligibility Criteria

Who can apply

Manufacturer exporters
Merchant exporters tied to supporting manufacturers
Service providers across four FTP modes (cross-border supply, consumption abroad, commercial presence, presence of natural persons)

What is covered as Capital Goods

Plant, machinery, equipment, or accessories used directly/indirectly in manufacturing or for rendering services
Machine tools, packaging equipment, power generation sets, refrigeration equipment, testing & R&D instruments, quality and pollution control equipment
Second-hand capital goods permitted without age restriction

Documents Required

Registration & Identity

Import Export Code (IEC)
PAN
Digital Signature
RCMC (as applicable)

Authorizations & Certificates

Certificate of Chartered Accountant (self-certified original)
Certificate of Chartered Engineer (self-certified original)

Application Enclosures

Proforma Invoice / Brochure of capital goods
GST registration (as applicable)
Excise registration (if applicable)
Tourism Department registration (if applicable)