EPCG Direct Import Scheme Specialists
Maximize your export potential with duty-free capital goods imports. Our expert consultants help you navigate the EPCG scheme with ease.
Zero Duty Imports
Import capital goods at zero customs duty
Cost Savings
Significant reduction in capital investment
Expert Guidance
End-to-end assistance with documentation
EPCG Licenses Obtained
Duty Saved
Success Rate
Years Experience
What is EPCG Direct Import Scheme?
The Export Promotion Capital Goods (EPCG) scheme allows duty-free import of capital goods for pre-production, production, and post-production activities, subject to an export obligation.
| Sl No | Particulars | Meanings / Definitions |
|---|---|---|
| 1 | EPCG Definition | Export Promotion Capital Goods |
| 2 | EPCG Purpose | To get Technology & Machinery Import which is not available in India. |
| 3 | Benefit | To avail / get Customs Duty Exemption (All Duty Free). |
| 4 | Obligation – SEO | Require to fulfil Export Obligation (SEO), 6 Times of Actual Duty Saved. |
| 5 | Obligation – AEO | In addition to SEO, require to fulfil / maintain Average Export Obligation (AEO) till SEO fulfilled year. |
| 6 | Stipulation - Import | 24 Months from EPCG Date. |
| 7 | Stipulation - Installation | Require to submit Installation Certificate within 6 months from the date of import. |
| 8 | Stipulation - Export | 6 years from EPCG Date (50% during 1-4 Years & balance 50% during 5-6 Years) |
Who Can Apply?
- Manufacturer exporters with or without supporting manufacturer(s)
- Merchant exporters tied to supporting manufacturer(s)
- Service providers including Common Service Providers (CSP)
- Companies in SEZ/EOU/EHTP/BTP/STP units
Financial Implications
-
Initial Cost:
Government fees for EPCG, certification charges for CA, Chartered Engineer, and consultancy fees + 18% GST.
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Liability:
In case of non-fulfillment of Export Obligation within stipulated time including extended period, customs duty along with applicable interest must be paid.
Required Documents:
- Valid IEC (Import Export Code)
- GSTIN Registration
- Company Registration Documents
- Bank Details with FIRC
- Previous Export Performance Records
Benefits of EPCG Direct Import Scheme
The EPCG scheme offers numerous advantages for businesses looking to enhance their manufacturing capabilities and export potential.
Zero Customs Duty
Import capital goods completely duty-free, resulting in significant cost savings of up to 25% on your capital investments.
Technology Upgrade
Access to advanced machinery and equipment at reduced costs, enabling technological upgradation and improved production efficiency.
Improved Cash Flow
Reduced initial investment requirements lead to better cash flow management and increased working capital availability.
Enhanced Competitiveness
Lower production costs and improved quality lead to more competitive pricing in international markets, increasing export potential.
Extended Time Frame
Generous 6-year period to fulfill export obligations, providing flexibility in business planning and execution.
Wide Coverage
Applicable to a broad range of capital goods including computer software systems and spares for maintenance.
EPCG Direct Import Process
Understanding the complete process from application to obligation fulfillment is crucial for successful implementation of the EPCG scheme.
Pre-cautionary Measures
Before applying for the EPCG scheme, it's important to take these precautionary measures to ensure smooth processing and compliance.
| Sl No | Check Points |
|---|---|
| 1 | Figure out / identify "Import Item" & "Export Product Nomenclature" duly mentioning Technical Specifications and Model Nos. |
| 2 | Classify both Import Item & Export Products at appropriate ITC (HS) Codes before applying for EPCG. |
| 3 | Do not mention lengthy "Export Product Descriptions" which may lead to complications while monitoring & final closure of EPCG. Try to avoid to mention pre-fix, suffix, Brand Name & Process Name in Export Product Description. |
Import Procedure
Follow these steps carefully to ensure smooth import of capital goods under the EPCG scheme.
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Register EPCG Authorisation with concerned Customs Authority (Port of Import mentioned on EPCG) by executing General Bond (LUT) in prescribed format on ₹ 100 Stamp Paper duly notarised with or without BG. For BG Exemption, you may contact us.
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Before filing of Bill of Entry (BE) with Customs, please ensure for the correctness of Import Item Description, ITC (HS) Code, Qty, UOM, CIF Value (FC) on Import Invoice, and other relevant documents which should exactly be as per EPCG Authorisation.
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Get Import clearance from Customs.
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Bring the Machinery to your Factory Address mentioned in EPCG.
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Install Machinery. Arrange Installation Certificate. Submit the same to DGFT & Customs within 6 months from the date of import (BE Date).
Export Procedure
After importing capital goods, follow these steps to fulfill your export obligation under the EPCG scheme.
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Manufacture Finished Product for Export by using Imported Machinery against EPCG.
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Execute Exports duly mentioning Export Product, ITC (HS) Code, EPCG No & EPCG Date on Shipping Bill, which should be exactly as per EPCG.
Important Note:
Remember that you need to fulfill 50% of your export obligation during the first 4 years, and the remaining 50% during the 5th and 6th years from the date of EPCG issuance.
Post Export Procedure
After fulfilling your export obligation, follow these steps to complete the EPCG process.
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Apply for Export Obligation Discharge Certificate (EODC) after completion / fulfilment of Export Obligation.
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On receipt of EODC, approach Customs Dept for "Bond Cancellation" & "BG Release" (if BG executed).
Required Documents for EODC:
- Installation Certificate
- ANF-5B Form
- CA Certificate in prescribed format
- Copies of Shipping Bills and related documents
Our Suggestions
Based on our extensive experience with the EPCG scheme, we recommend the following best practices.
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Better to use / keep some kind of office tool (Customised Software) to keep Import & Export Accountability atleast for Duty Exemption Schemes (EPCG) wherever sizeable EXIM transactions are taking place.
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Always better to hire "External Agency" to keep 2nd check of EXIM (Scheme related) transactions and also to validate documents of all EXIM Transactions to avoid last movement rush and complications. We suggest you to keep EXIM Audit option on periodical basis. For EXIM Audit you may contact us.
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Please reach us to get our expertise which will help you with proper Awareness, Guidance, Understanding & Quality Services to have leak proof mechanism to avoid unwanted financial implication on account of Penalty for late filing of Bill of Entry, Detention Charges & Demurrage Charges.
Expert Assistance Available
Our team of EPCG specialists can help you navigate the entire process from application to obligation fulfillment.
Contact Our ExpertsOur EPCG Consultation Services
We provide comprehensive end-to-end services to help you maximize the benefits of the EPCG scheme and ensure compliance with all requirements.
EPCG License Application
- Eligibility assessment and consultation
- Documentation preparation and verification
- Online application filing and tracking
- Liaison with DGFT for license issuance
Import Facilitation
- Customs documentation preparation
- Bond execution with customs
- Coordination with shipping lines and CHA
- Smooth clearance of imported goods
Export Obligation Management
- Export obligation calculation and planning
- Regular monitoring and compliance checks
- Timely filing of export obligation reports
- Extension applications if required
EODC & Redemption
- Export Obligation Discharge Certificate filing
- Documentation for redemption of bond
- Bank guarantee release assistance
- Complete closure of EPCG license
Client Success Stories
See how our clients have benefited from our EPCG consultation services.
"Their expertise in EPCG scheme helped us save over ₹2 crores in customs duty on our imported machinery. The process was smooth and hassle-free, with excellent guidance at every step."
Rajesh Kumar
CEO, Precision Engineering Ltd.
"We were struggling with export obligation management until we found these experts. Their systematic approach and regular monitoring helped us fulfill our obligations well before the deadline."
Priya Sharma
Director, Global Textiles Pvt. Ltd.
"As a first-time EPCG applicant, we were overwhelmed by the documentation requirements. Their team guided us through every step and made the process incredibly simple. Highly recommended!"
Vikram Singh
MD, Innovative Solutions India
Frequently Asked Questions
Get answers to common questions about the EPCG Direct Import Scheme.
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