Export Promotion Capital Goods (EPCG) License
Best EPCG Scheme and Export License Services β DGFT EXIM
The Export Promotion Capital Goods (EPCG) scheme is a flagship initiative by the Government of India, designed to promote the export of domestically manufactured goods. Under this scheme, eligible exporters can import capital goods at zero or concessional customs duty, subject to fulfilling specified export obligations. It acts as an effective export facilitation tool for businesses aiming to boost their export performance and global competitiveness.
π Objective of the EPCG Scheme
The EPCG scheme enables exporters to access modern capital goods and advanced technology for enhancing productivity, improving product quality, and reducing production costs β making Indian exports globally competitive.
π Who is Eligible for an EPCG License?
As per the Directorate General of Foreign Trade (DGFT) guidelines, the following categories can apply:
- Manufacturer Exporters
- Merchant Exporters tied with supporting manufacturers
- Service Providers recognized under the Foreign Trade Policy
π Export Obligation under the EPCG Scheme
Exporters availing EPCG benefits must fulfill an export obligation, typically within 6 to 8 years from the date of license issuance.
The export obligation is calculated as 6 times the duty saved on the imported capital goods under the license.
π Key Benefits of the EPCG Scheme
- β Duty-Free / Concessional Import of capital goods, including customs duties, IGST, and compensation cess.
- β Flexibility to Source Globally β capital goods can be imported from any country.
- β Technological Upgradation β access to advanced machinery and equipment improves operational efficiency.
- β Enhanced Production Capability β import essential capital goods like machinery, equipment, and tools for expanding or modernizing manufacturing setups.
π Application Process for EPCG License
Exporters can conveniently apply through the DGFT's online portal by submitting:
Business Registration
Business registration and IEC details
Export Performance
Export performance records
Capital Goods Details
Details of proposed capital goods and import values
Export Commitment
A formal commitment to fulfilling the export obligation
Upon approval, the EPCG license is issued digitally, allowing duty-free or concessional imports as per the scheme's terms.
π Why Choose DGFT EXIM for Your EPCG License?
At DGFT EXIM, we offer expert services to simplify your EPCG registration and compliance process:
- β Expert guidance on scheme eligibility and documentation
- β Hassle-free online application filing with DGFT
- β Regular follow-ups for speedy approvals
- β End-to-end support on post-license obligations and redemption
We ensure a smooth, efficient process so you can focus on growing your exports while we manage the regulatory formalities.