Top Export Promotion Capital Goods Scheme (EPCG) Consultants

Export Promotion Capital Goods Scheme (EPCG) helps you in facilitating the import of capital goods for manufacturing quality goods and to improve the competitiveness of India’s export.

In simple terms, EPCG Scheme enables us to import the capital goods without the payment of any customs duty.

Conditions under EPCG Scheme:

• • EPCG Authorization is only valid for 24 months form the date of issuance of Authorization to Import the Capital Goods.

• • The capital goods which are imported under EPCG Scheme need to be installed within 6 months form the date of Import.

• • In case of Merchant Exporter, the supporting Manufacturer Name, address should be mentioned in the EPCG Authorization.

• • To avail EPCG Scheme, the authorization holder needs to fulfil the export obligation of 6 times of duty saved value within 6 years (50% during 1-4 Years & Balance 50% during 5-6 Years).

• • Export obligation can be fulfilled my doing Direct Exports or through 3^rd Party Exports by mentioning your IEC and EPCG Authorization Number in the Export documents like Shipping Bill, Tax Invoice, etc.

• • Authorization holder need to give the Bank Guarantee against the issued EPCG Authorization.

• • In case of non-fulfilment of the Export Obligation under EPCG Scheme within stipulated time, required to pay customs duties along with the applicable interest as prescribed by the Customs Department.

EPCG Scheme Eligibility – Capital Goods

The following types of capital goods can be imported under EPCG Scheme

• • Plant, machinery, equipment or accessories required for manufacturing the finished products either directly or indirectly, including required for the modernization, technological upgradation or expansion.

• • Packaging machinery and equipment

• • Refrigeration equipment

• • Machine tools

• • Catalysts for initial charge

• • Equipment and instruments for testing, research and development, quality and pollution control.

• • Capital goods used in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, poultry, sericulture and viticulture as well as those used in services sector.

• • Computer software systems

• • Spares, moulds, dies, jigs, fixtures

• • Catalysts for initial charge plus one subsequent charge

• • Second handled Machinery / Capital Goods are not eligible for the EPCG Scheme.

In addition to the above types of capital goods, other types of capital goods can also be permitted under the EPCG scheme subject to approval from the Exim Facilitation Committee at Directorate General of Foreign Trade (DGFT).

How SSB Exim will help you

• Apply for Fresh EPCG License

• Amendment of EPCG License

• Invalidation Letters against EPCG License

• Installation Certificate against EPCG License

• Apply for EPCG License – Block wise / EOP Extension

• Surrender/Cancellation of EPCG License

• EPCG License EO Monitoring

• EPCG License EODC / Closure