EPCG-Export-Promotion-Capital-Goods

EPCG scheme step by step process for exporters

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  • by MI September 16, 2025

The Export Promotion Capital Goods (EPCG) Scheme allows Indian exporters to import capital goods at zero customs duty to enhance production for exports. In exchange, exporters commit to fulfilling a fixed export obligation. Here’s a step-by-step guide to the EPCG scheme process in 2025.

Step 1: Understand EPCG Scheme Benefits

  • Import capital goods, machinery, spares at zero customs duty.
  • Helps reduce production costs and improve competitiveness.
  • Promotes technology upgradation in export-oriented businesses.

Step 2: Check Eligibility for EPCG

  • Manufacturer exporters with or without supporting manufacturers.
  • Merchant exporters tied to supporting manufacturers.
  • Service providers (tourism, hospitality, healthcare, IT, etc.).

Minimum Export Obligation: Export worth 6 times the duty saved, within 6 years.

Step 3: Prepare Documents

  • IEC (Import Export Code)
  • RCMC (Registration-Cum-Membership Certificate from EPC/Council)
  • GST registration certificate
  • CA-certified statement of exports (if applicable)
  • Detailed machinery/capital goods purchase details
  • Proforma Invoice of machinery to be imported
  • Bank certificate of firm’s financial standing

Step 4: Apply Online via DGFT Portal

  1. Visit DGFT portal.
  2. Login with your IEC and DSC (Digital Signature Certificate).
  3. Go to “Services → EPCG → Apply for EPCG Authorization”.
  4. Fill application form ANF 5A with details of capital goods and export obligation.
  5. Upload all required documents (PDF format).
  6. Pay application fee via online mode.
  7. Submit application for regional DGFT office approval.

Step 5: Obtain EPCG Authorization

If approved, DGFT issues an EPCG license/authorization. This document allows you to import the specified machinery at zero duty.

Step 6: Fulfil Export Obligation

  • Within 6 years from license date, exporters must achieve exports worth 6 times the duty saved.
  • Export obligation can be fulfilled by direct exports or deemed exports.
  • Maintain proper shipping bills and e-BRC (Bank Realisation Certificates) as proof.

Step 7: Submit Export Obligation Discharge (EODC)

Once the export obligation is completed:

  1. Compile export proof (shipping bills, e-BRC, invoices).
  2. Apply for EODC on DGFT portal.
  3. Regional DGFT verifies documents and closes the license.

Common Conditions under EPCG Scheme

  • Capital goods must be used only for production of export products.
  • Installation certificate must be obtained after machinery installation.
  • Transfer/sale of imported machinery is restricted for 6 years.

Final Thoughts

The EPCG scheme is a powerful tool for exporters aiming to modernize production and compete globally. By following the step-by-step process and meeting obligations, exporters can grow faster while saving costs on machinery imports.

Pro Tip: Always maintain accurate export records. Missing documents may lead to penalties or cancellation of EPCG benefits.

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