Export Promotion Capital Goods (EPCG) Authorisations

The objective of the EPCG Scheme is to facilitate import of capital goods for producing quality goods and services to enhance India’s export competitiveness. EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty. Alternatively, the Authorization holder may also procure Capital Goods from indigenous sources on Zero Duty.

Conditions for EPCG scheme

• Import of capital goods for Project Imports notified by Central Board of Excise and Customs is also permitted under EPCG Scheme.
• Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duty saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorization.
• Authorization shall be valid for import for 18 months from the date of issue of Authorization. Revalidation of EPCG Authorization shall not be permitted.
• In case countervailing duty (CVD) is paid in cash on imports under EPCG, incidence of CVD would not be taken for computation of net duty saved, provided CENVAT is not availed.
• Second hand capital goods shall not be permitted to be imported under EPCG Scheme.
• For import of the restricted Capital Goods approval of the Exim Facilitation Committee (EFC) at DGFT Headquarters is required.
• For export of the restricted items under the EPCG scheme approval of the Exim Facilitation Committee (EFC) at DGFT Headquarter.

How we assist

We may assist you:-

• Preparation and filing of application with the concerned office of DGFT.
• Providing assistance and obtaining EPCG Authorisation on behalf of importer of Capital Goods.
• In case of domestic procurement we can assist in getting necessary invalidations from the authority and the refund of excise duty.
• We will assist in redemptions of the Authorization. We also take matters of clarifications/Relaxations etc. from the DGFT.