Export Promotion Capital Goods (EPCG) Scheme

What is the EPCG Scheme under DGFT?

If you are planning to Import New Machines under “NIL” Customs Duty? The Export Promotion Capital Goods (EPCG) Scheme allows exporters to import capital goods at zero customs duty, subject to fulfilling an export obligation (EO) equivalent to 6 times the duty saved, within a specified period.

Who can apply for the EPCG Scheme?

Manufacturer exporters, merchant exporters tied to supporting manufacturers, and service providers in sectors like hotels, healthcare, IT, and logistics can apply for an EPCG Licence through the DGFT portal.

What is the export obligation under EPCG?

Exporters must fulfill an export obligation of 6 times the duty saved on capital goods within 6 years from the date of licence issuance. They must also maintain Average Export Performance (AEP) over the obligation period.

Can second-hand capital goods be imported under EPCG?

No, the import of second-hand capital goods is not allowed under the EPCG Scheme (except in rare cases through relaxation/representation before DGFT Committees).

What happens if export obligation is not fulfilled under EPCG?

If the exporter fails to meet the AEP and EO, they are liable to pay the full customs duty saved plus interest. Relief may be sought through the EPCG Committee, DGFT Delhi, for waiver or extension in genuine hardship cases.

Can EPCG benefits be combined with Advance Authorisation or RoDTEP?

Yes, EPCG can be availed along with Advance Authorisation, RoDTEP, or RoSCTL, subject to conditions. Common Challenges Exporters Face in EPCG Scheme

❌ Complex Export Obligation Calculation – Confusion in calculating EO and maintaining Average Export Performance (AEP).
❌ Procedural Delays – Issues in filing applications, amendments, or extensions on the DGFT portal.
❌ Non-fulfilment of EO – Due to global slowdown, supply chain disruptions, or unforeseen events.
❌ Documentation Issues – Missing shipping bills, BRC, incorrect IEC details, or mismatch in EDI data, Scheme code, etc.
❌ Ineligibility of Second-Hand Capital Goods – Import restrictions cause challenges for SMEs.
❌ Show Cause Notices from DGFT/Customs – For delays, incorrect declarations, or non-compliance.
❌ Lack of Awareness of PRC/EPCG Committee Relief – Many exporters fail to seek relaxation in time.

👉 Sohamma International Pvt. Ltd. supports exporters with EPCG licence application, EO calculation, AEP compliance, EODC closure, and representation before EPCG Committee, DGFT Delhi to ensure smooth compliance and maximum duty savings. Key Benefits of the EPCG Scheme:

✅ Zero duty EPCG scheme: Complete exemption from Basic Customs Duty (BCD) for Import of New Capital Goods.
✅ No IGST & Compensation Cess, as per Department of Revenue notifications
✅ Option for indigenous capital goods procurement.
✅ Deemed Export benefits for domestic suppliers
✅ Reduced export obligation (EO) for Green Technology products and NE/UT-based units
✅ Scheme available for service exporters and manufacturers.
✅ Flexibility under IBC 2016 in case of insolvency

EO can be fulfilled through:

Physical exports
Deemed exports
Third-party exports
Service sector exports
Royalty payments / R&D in foreign exchange

Industry-Specific EPCG Support: We offer tailored EPCG consultancy for:

EPCG scheme for textile industry
EPCG for engineering goods manufacturers
EPCG for hotels and hospitality
EPCG for pharma machinery
EPCG for service sector exporters

EPCG application online
Capital goods import planning
Export obligation tracking and closure
DGFT representation and policy relaxation support
Assistance in EPCG redemption and closure help.
Export Period Extensions.

At Sohamma International Pvt. Ltd., we are leading EPCG consultants in India, offering expert assistance for EPCG license application, export obligation calculations, Classification, DGFT approvals, and post-closure support. We offer expert services in EPCG export obligation calculation, fulfillment, and post-export obligation filing support. Searching how to apply for EPCG license or need clarification on EPCG scheme eligibility? Talk to an EPCG license consultant at Sohamma. We guide clients step-by-step through the EPCG application process and ensure accurate EPCG duty saved calculation. Looking for EPCG consultant in Mumbai, DGFT EPCG consultant in Delhi, or a policy expert in Gujarat? Sohamma serves clients PAN-India with industry-specific guidance.Whether you are looking for an EPCG consultant near me, or need help with a complex EPCG license application, our expert team ensures faster approvals, full compliance, and long-term savings. Let’s Get Your EPCG License Started Today! Need an expert for DGFT EPCG license application or help with post-approval compliance? Get in touch with Sohamma International Pvt. Ltd. – your trusted advisor for the EPCG scheme in India.

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