Export Promotion Capital Goods (EPCG) Authorization

Name: metacorp
Address: H-23, H Block, Sector 63, Noida, 201310, IN
Telephone: +91-9310710156

EPCG (Export Promotion Capital Goods) Authorization issued by the Directorate General of Foreign Trade is one of the most powerful export incentive schemes under India’s Foreign Trade Policy

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Overview
Benefits
Process
Documents
Deliverables
FAQs

Export Promotion Capital Goods (EPCG) Authorization

Overview

EPCG (Export Promotion Capital Goods) Authorization issued by the Directorate General of Foreign Trade is one of the most powerful export incentive schemes under India’s Foreign Trade Policy. It enables businesses to import capital goods such as machinery, equipment, spares, and technology at zero or concessional customs duty, with a commitment to fulfill export obligations over a defined period.
This scheme is designed to encourage Indian manufacturers and service providers to upgrade their technology, improve productivity, and compete effectively in international markets. Whether you are setting up a new unit or expanding an existing one, EPCG significantly reduces upfront investment burden and improves ROI.

Benefits of EPCG Authoprization

How to apply for EPCG Authorization?

Step 1: Eligibility & Feasibility Analysis
We assess your business model, export potential, and capital goods requirement to determine EPCG suitability and calculate expected benefits vs obligations.

Step 2: Export Obligation Calculation
We compute the exact export obligation based on duty saved and guide you on realistic export targets aligned with your business capacity.

Step 3: Documentation Preparation
All required documents are compiled, verified, and structured to ensure error-free filing and avoid delays or rejections.

Step 4: Application Filing on DGFT Portal
We file the EPCG application online with accurate technical and financial details, ensuring compliance with DGFT guidelines.

Step 5: Query Handling & Approval
If DGFT raises any queries, we handle clarifications, modifications, and follow-ups to ensure smooth approval.

Step 6: Authorization Issuance
Once approved, EPCG authorization is issued with clearly defined terms, including import value, duty saved, and export obligation.

Step 7: Import / Procurement & Installation
You can import or procure machinery. Post-installation, necessary certificates are obtained to confirm usage as per EPCG norms.

Step 8: Export Execution & Monitoring
We assist in tracking export performance, maintaining records, and ensuring timely fulfillment of export obligations.

Step 9: EODC (Closure of EPCG Authorization)
After fulfilling export obligation, we file for Export Obligation Discharge Certificate (EODC) and complete the closure process.

Documents required for EPCG Authorization

IEC (Import Export Code)
GST Registration Certificate
PAN of the entity
Proforma Invoice / Purchase Order of capital goods
CA Certificate for duty saved & EO calculation
Digital Signature Certificate (DSC)
Installation Certificate (post import)
Past export data
Undertaking / declarations as per DGFT

What You Get?

Detailed EPCG eligibility analysis report
Accurate export obligation calculation sheet
Complete documentation & application filing
Continuous follow-up with DGFT authorities
Query resolution and amendment support
Installation & compliance guidance
Export tracking advisory
EODC filing and final closure support

Tags: Export Promotion Capital Goods (EPCG) Authorization

Common Questions

Frequently Asked Questions

Under the Directorate General of Foreign Trade EPCG scheme, businesses can import capital goods like machinery, equipment, spares, tools, and software required for production or service delivery. These goods must directly contribute to export activities. In some cases, second-hand machinery is also allowed, subject to conditions.

Export obligation is generally 6 times the duty saved amount on imported capital goods. For example, if ₹10 lakh duty is saved, EO becomes ₹60 lakh. This must be fulfilled within 6 years, ensuring businesses have sufficient time to generate exports

Yes, startups and new businesses can apply without prior export history. However, they must demonstrate a clear export plan and the capacity to meet export obligations. Proper planning is important to avoid future compliance issues.

Yes, EPCG is available for service sectors like hotels, hospitals, and logistics companies. Instead of physical exports, they can earn foreign exchange through services to fulfill export obligations. This makes the scheme versatile across industries.

If EO is not met, the business must pay the proportionate duty saved along with interest. DGFT allow extensions or partial relief in certain cases. However, non-compliance can lead to financial and legal consequences.