What is the maximum duty-exempted value under the EPCG Scheme?

DGFT does not prescribe a fixed ceiling on duty-exempted value; it is determined based on the applicant's export capacity, capital investment justification, and sector guidelines. However, the duty-exempted value must be proportionate to the proposed export quantity and realistic market demand. Large manufacturing units have imported goods valued at ₹50-100+ crores under EPCG; SMEs typically import between ₹5-20 crores. Each authorization is individually assessed.

Can capital goods be imported from non-SAARC countries under EPCG?

Yes, capital goods can be imported from any country except those on India's restricted trade list. However, if goods are imported from SAARC countries, the import is subject to additional eligibility checks to ensure they are not originally manufactured outside SAARC and merely re-exported. DGFT and CBIC coordinate to verify country-of-origin certificates for SAARC imports.

What happens if export obligations are not met within 60 months?

Failure to achieve export obligations within 60 months from authorization date results in recovery of the entire duty-exempted amount as customs duty arrears, plus interest at 15% per annum from the import date. The exporter becomes liable for penalty proceedings under FTP 2023-28. Time extension up to 12 months may be granted on written request to DGFT for documented force majeure events (pandemic, natural disaster, war).

Can EPCG authorization be transferred to another exporter or entity?

No, EPCG authorization is non-transferable and tied strictly to the exporter's IEC and entity. If the exporting entity undergoes merger, acquisition, or restructuring, a fresh EPCG authorization must be applied for by the successor entity. The original authorization remains valid for the original exporter only.

How are exports calculated for meeting EPCG export obligations?

Exports are calculated on Free on Board (FOB) value basis, as per official bank realizations of foreign exchange. Only exports made against Letters of Credit (LC), telegraphic transfers (TT), or bank-certified bills of exchange qualify. Domestic sales, barter transactions, and non-monetized exports do not count toward EPCG obligations. DGFT cross-verifies export data with CBIC and RBI records.

EPCG Scheme

Understand India's EPCG Scheme for duty-free capital goods imports. Eligibility, application process, export obligations, and compliance requirements explained by EXIM experts.

Prepare comprehensive EPCG Application (Form-A) with IEC, PAN, GST registration, capital goods specifications, and auditor certification; submit electronically on DGFT portal
DGFT Regional office evaluates application for policy compliance and export viability within 15-20 working days; respond to any clarifications requested
Receive EPCG Authorization Certificate specifying duty-exempted value, capital goods list, and 60-month export obligation quantum
Present Authorization Certificate to CBIC customs house at import port; clear capital goods duty-free without Basic Customs Duty, IGST, or Cess
File half-yearly performance statements (Form-H) with DGFT and customs documenting export realizations, units sold, and capital goods utilization proof

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What is EPCG Scheme?

The Export Promotion Capital Goods (EPCG) Scheme is a flagship trade facilitation mechanism administered by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade Policy (FTP) 2023-28. This scheme permits Indian exporters to import capital goods at zero customs duty for establishing, upgrading, or modernizing export-oriented manufacturing and service units. The imported capital goods must be utilized to enhance export capacity and competitiveness within a stipulated performance period.

Under the EPCG Scheme, exporters can access high-value equipment and machinery without bearing the standard customs duty burden, thereby reducing capital expenditure significantly. The scheme operates under the Customs Act, 1962, and all transactions are monitored through the Directorate of Revenue Intelligence (DRI) and DGFT regional offices. The duty exemption is contingent upon fulfilling export obligations within the prescribed timeframe, typically 60 months from authorization.

Pricing

Package	Price	Details
Standard	On request	Including document prep

Process

📋
Prepare comprehensive EPCG Application (Form-A) with IEC, PAN, GST registration, capital goods specifications, and auditor certification; submit electronically on DGFT portal
🔍
DGFT Regional office evaluates application for policy compliance and export viability within 15-20 working days; respond to any clarifications requested
📝
Receive EPCG Authorization Certificate specifying duty-exempted value, capital goods list, and 60-month export obligation quantum
✅
Present Authorization Certificate to CBIC customs house at import port; clear capital goods duty-free without Basic Customs Duty, IGST, or Cess
📤
File half-yearly performance statements (Form-H) with DGFT and customs documenting export realizations, units sold, and capital goods utilization proof

Documents Required

Valid Importer-Exporter Code (IEC) and IEC certificate copy
Application Form-A (EPCG) with detailed project proposal, capital goods specifications, and expected export markets
PAN certificate and GST registration certificate (active)
Auditor's certificate on export capacity and financial position (from CA/practicing auditor)
Detailed specifications, technical drawings, and quotations of capital goods to be imported
Customs broker's license copy and Letter of Authorization to customs house

Frequently Asked Questions

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EPCG Scheme

Understand India's EPCG Scheme for duty-free capital goods imports. Eligibility, application process, export obligations, and compliance requirements explained by EXIM experts.

Prepare comprehensive EPCG Application (Form-A) with IEC, PAN, GST registration, capital goods specifications, and auditor certification; submit electronically on DGFT portal

DGFT Regional office evaluates application for policy compliance and export viability within 15-20 working days; respond to any clarifications requested

Receive EPCG Authorization Certificate specifying duty-exempted value, capital goods list, and 60-month export obligation quantum

Present Authorization Certificate to CBIC customs house at import port; clear capital goods duty-free without Basic Customs Duty, IGST, or Cess

File half-yearly performance statements (Form-H) with DGFT and customs documenting export realizations, units sold, and capital goods utilization proof

Google VerifiedBusiness

500+Export Clients Served

End-to-EndEXIM Support

What is EPCG Scheme?

Package

Price

Details

Standard

On request

Including document prep

Process

📋

Prepare comprehensive EPCG Application (Form-A) with IEC, PAN, GST registration, capital goods specifications, and auditor certification; submit electronically on DGFT portal

🔍

DGFT Regional office evaluates application for policy compliance and export viability within 15-20 working days; respond to any clarifications requested

📝

Receive EPCG Authorization Certificate specifying duty-exempted value, capital goods list, and 60-month export obligation quantum

✅

Present Authorization Certificate to CBIC customs house at import port; clear capital goods duty-free without Basic Customs Duty, IGST, or Cess

📤

File half-yearly performance statements (Form-H) with DGFT and customs documenting export realizations, units sold, and capital goods utilization proof

Documents Required

Valid Importer-Exporter Code (IEC) and IEC certificate copy

Application Form-A (EPCG) with detailed project proposal, capital goods specifications, and expected export markets

PAN certificate and GST registration certificate (active)

Auditor's certificate on export capacity and financial position (from CA/practicing auditor)

Detailed specifications, technical drawings, and quotations of capital goods to be imported

Customs broker's license copy and Letter of Authorization to customs house

Frequently Asked Questions