What is the validity period of an EPCG Spares Import authorization?

EPCG Spares Import authorizations are typically valid for 2-3 years from the date of issuance by DGFT. Renewal is possible by applying 60-90 days before expiry with evidence of past compliance (successful EUR filings and zero show-cause notices). Authorization validity is mentioned in the digital certificate issued by DGFT.

Can spares imported under this scheme be used for non-export purposes?

No. Spares imported under EPCG Spares scheme must be used exclusively for maintenance and operation of capital goods linked to exports or export-oriented production. Diversion to domestic sales or non-export purposes constitutes end-use violation, attracting duty recovery, penalties up to 100% of duty, and potential legal action under Customs Act 1962.

What happens if I fail to file End-Use Reports (EUR) within the prescribed timeline?

Failure to file EUR within 90-180 days of import triggers a Customs show-cause notice and duty demand with interest at 18% per annum. The importer must respond with end-use documentation or face duty recovery and possible suspension of authorization. Maintaining quarterly EUR filing discipline is critical for compliance.

Are there restrictions on the type of spares that can be imported under this scheme?

Yes. Spares must be directly consumable or integral to the functioning of specific capital equipment and must be classified under the parent HS code of the equipment they service. Items under Imports Policy Schedule I (restricted/prohibited items) and general-purpose consumables not linked to specific equipment are not eligible. Technical specifications must be approved by DGFT.

Can SEZ units and EOUs use EPCG Spares authorization?

Yes. Special Economic Zone (SEZ) units and Export-Oriented Units (EOUs) can import spares under this scheme if they have valid SEZ registration or EOU license. However, they must file EOUs/SEZ-specific End-Use Reports with the Development Commissioner or customs authority overseeing their zone, in addition to regular Customs filings.

EPCG Spares Import

Understand EPCG Spares Import scheme in India. Duty-free import of spare parts for capital goods. Eligibility, process, compliance under DGFT FTP 2023-28.

Step 1: Verify IEC validity, RCMC status from recognized Export Promotion Council, and active EPCG or equivalent export-linked import authorization on DGFT Portal
Step 2: Prepare technical documentation including invoices, HS classification, bill of lading, import indent with specifications, and CA/CS-certified end-use declaration
Step 3: Submit application digitally through DGFT Portal with Customs declaration, bank guarantee undertaking (25-30% of CIF value), and authorization letter from Customs broker
Step 4: Respond to DGFT queries within 7 days regarding technical specifications, quantity justification, or export commitment linkage if raised during 10-15 working day processing
Step 5: Receive digital EPCG Spares authorization certificate with unique authorization number and file quarterly End-Use Reports (EUR) with Customs to maintain compliance

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What is EPCG Spares Import?

EPCG (Export Promotion Capital Goods) Spares Import is a duty-free import scheme administered by the DGFT (Directorate General of Foreign Trade) under the Foreign Trade Policy 2023-28 that permits Indian exporters to import spare parts, components, and consumables required for the maintenance and operation of capital goods already imported under the EPCG scheme or for goods manufactured in India. This provision enables manufacturers to sustain continuous production without incurring customs duties on essential spares, thereby reducing operational costs and enhancing competitiveness in global markets.

The scheme operates under Chapter 5 of the FTP 2023-28 and is governed by the Customs Act 1962 and FTDR (Foreign Trade (Development and Regulation) Act 1992. Spares imported under this authorization must be directly consumable or integral to the functioning of the capital equipment, and the importer must maintain strict end-use compliance documentation as mandated by CBIC (Central Board of Indirect Taxes and Customs) circulars.

Pricing

Package	Price	Details
Standard	On request	Including document prep

Process

📋
Step 1: Verify IEC validity, RCMC status from recognized Export Promotion Council, and active EPCG or equivalent export-linked import authorization on DGFT Portal
🔍
Step 2: Prepare technical documentation including invoices, HS classification, bill of lading, import indent with specifications, and CA/CS-certified end-use declaration
📝
Step 3: Submit application digitally through DGFT Portal with Customs declaration, bank guarantee undertaking (25-30% of CIF value), and authorization letter from Customs broker
✅
Step 4: Respond to DGFT queries within 7 days regarding technical specifications, quantity justification, or export commitment linkage if raised during 10-15 working day processing
📤
Step 5: Receive digital EPCG Spares authorization certificate with unique authorization number and file quarterly End-Use Reports (EUR) with Customs to maintain compliance

Documents Required

Valid IEC Certificate (Import-Export Code) issued by DGFT
RCMC (Registration-cum-Membership Certificate) from recognized Export Promotion Council
Copy of parent EPCG authorization or Advance Authorization certificate with export fulfillment proof
Technical specifications and bill of lading of spares with HS classification and linkage to capital equipment
Bank guarantee letter (25-30% of CIF value) from scheduled commercial bank
End-Use Declaration certified by Chartered Accountant or Company Secretary with maintenance/production records

Frequently Asked Questions

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EPCG Spares Import

Understand EPCG Spares Import scheme in India. Duty-free import of spare parts for capital goods. Eligibility, process, compliance under DGFT FTP 2023-28.

Step 1: Verify IEC validity, RCMC status from recognized Export Promotion Council, and active EPCG or equivalent export-linked import authorization on DGFT Portal

Step 2: Prepare technical documentation including invoices, HS classification, bill of lading, import indent with specifications, and CA/CS-certified end-use declaration

Step 3: Submit application digitally through DGFT Portal with Customs declaration, bank guarantee undertaking (25-30% of CIF value), and authorization letter from Customs broker

Step 4: Respond to DGFT queries within 7 days regarding technical specifications, quantity justification, or export commitment linkage if raised during 10-15 working day processing

Step 5: Receive digital EPCG Spares authorization certificate with unique authorization number and file quarterly End-Use Reports (EUR) with Customs to maintain compliance

Google VerifiedBusiness

500+Export Clients Served

End-to-EndEXIM Support

What is EPCG Spares Import?

Package

Price

Details

Standard

On request

Including document prep

Process

📋

Step 1: Verify IEC validity, RCMC status from recognized Export Promotion Council, and active EPCG or equivalent export-linked import authorization on DGFT Portal

🔍

Step 2: Prepare technical documentation including invoices, HS classification, bill of lading, import indent with specifications, and CA/CS-certified end-use declaration

📝

Step 3: Submit application digitally through DGFT Portal with Customs declaration, bank guarantee undertaking (25-30% of CIF value), and authorization letter from Customs broker

✅

Step 4: Respond to DGFT queries within 7 days regarding technical specifications, quantity justification, or export commitment linkage if raised during 10-15 working day processing

📤

Step 5: Receive digital EPCG Spares authorization certificate with unique authorization number and file quarterly End-Use Reports (EUR) with Customs to maintain compliance

Documents Required

Valid IEC Certificate (Import-Export Code) issued by DGFT

RCMC (Registration-cum-Membership Certificate) from recognized Export Promotion Council

Copy of parent EPCG authorization or Advance Authorization certificate with export fulfillment proof

Technical specifications and bill of lading of spares with HS classification and linkage to capital equipment

Bank guarantee letter (25-30% of CIF value) from scheduled commercial bank

End-Use Declaration certified by Chartered Accountant or Company Secretary with maintenance/production records

Frequently Asked Questions