EPCG Scheme Guide: Simple Explanation for Exporters

Many exporters want to import machinery for production, but high customs duty can increase the cost. This is where the EPCG Scheme helps.

· EPCG stands for Export Promotion Capital Goods Scheme.

Under this scheme, exporters can import capital goods like machinery, equipment, tools, moulds, dies, and production-related machines at zero customs duty, subject to certain conditions.

EPCG Scheme infographic explaining import of machinery and capital goods at zero customs duty for exporters under DGFT rules.

· But there is one important point:

Exporter must complete Export Obligation within the prescribed time period.

In simple words, if an exporter saves duty by importing machinery under EPCG, then the exporter has to make exports as per DGFT rules.

EPCG Scheme image explaining export obligation, prescribed time period, DGFT rules, and compliance requirement for exporters importing machinery under EPCG.

· Benefits of EPCG Scheme:

1) It helps reduce machinery import cost.

2) It supports business expansion.

3) It improves production capacity.

4) It helps exporters become more competitive in the global market.

Benefits of EPCG Scheme infographic showing reduced machinery import cost, business expansion, improved production capacity, and global export competitiveness for exporters.

· Conclusion:

EPCG Scheme is a useful facility for exporters who want to upgrade machinery and grow their export business. However, proper documentation and timely export obligation compliance are very important.

For exporters, understanding EPCG before importing machinery can save cost and avoid future compliance issues.

Overall, the Benefits of EPCG Scheme provide strong support to exporters for machinery import, production growth, and export competitiveness.