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Central Government Announce EPCG Scheme for Exporters in New Foreign Trade Policy

The central government has issued the Notification stating “strongly considering’’ the extension of the popular Export Promotion Capital Goods (EPCG) scheme, which authorises duty-free imports of certain capital goods subject to a specific export obligation in the new foreign trade policy (FTP). Previously (DGFT) extended Foreign Trade Policy 2015-2020 (FTP) by six months. In this article, we will discuss the EPCG scheme in detail.

What is EPCG Scheme?

EPCG is an Export Promotion Capital Goods. The intent of this scheme is to relieve the import of capital goods to produce quality goods and services to improve India’s import export competitiveness. EPCG scheme authorises the import of capital goods for pre-production, production and post-production at zero customs duty. Also, it allows the import of capital goods that are used in pre-production, production, and post-production without the payment of customs duty.

This is a Scheme that enables an importer (being an export-oriented business) to import capital goods at zero rates of customs duty. However, the scheme is subject to an export deal equivalent to 6 times of duty kept on the importation of such capital goods within 6 years from the date of issuance of the authorization.

Recent Notification in EPCG scheme

The central government has announced the Notification stating “strongly considering’’ the extension of the popular Export Promotion Capital Goods (EPCG) scheme, which permits duty-free imports of specific capital goods subject to a specific export obligation in the new foreign trade policy (FTP) likely to be implemented from October 1, 2022. Previously, the DGFT extended Foreign Trade Policy 2015-2020 (FTP) by six months.

Under the scheme, the purpose is to initially concentrate on 50 districts which have products that are scalable and hold huge export potential, the official said. The DGFT would observe a "challenge route" method to select these districts; the official said adding states and districts that want to avail the financial incentives under the scheme should contend for that.

Benefits from EPCG Scheme

EPCG is intended for promoting exports and the Indian Government with the aid of this scheme offers incentives and financial support to the exporters. Heavy exporters could benefit from this provision. However, it is not advisable to go forward with this scheme for those who don’t expect to manufacture in quantity or expect to sell the produce entirely within the country, as it could become almost unattainable to fulfil the obligations specified under this scheme.

How to apply for EPCG Scheme?

EPCG is a scheme that is mainly associated to machinery, machinery parts and similar goods. Any company that is applied in the manufacturing sector or in heavy production that would like to import machinery for its factories from a foreign country can regard this scheme. 

The candidate or applicant must proffer an online application to DGFT to acquire EPCG License; please follow the measures provided below:

  1. Firstly, you have to visit the DGFT official website;

  2. Then logging into DSC official website;

  3. Then choose services and file an online E-com Application;

  4. Click on EPCG (0%);

  5. Fill out all the details and upload the vital records;

  6. Kindly note that the subsequent vital points to be noted to ensure the documents are organised error-free:

  7. After filling in all the information select apply;

  8. After a successful application, DGFT will allocate the EPCG License.

How to obtain an EPCG License?

In order to obtain a License under the EPCG scheme, it is a primary necessity to apply with the licensing authority of the Director General of Foreign Trade. The application shall be attached with the mandated documents along with the company and personal particulars. There are different documents required for obtaining the EPCG License.

  • Import Export Code (IEC)

  • Registration cum Membership Certificate (RCMC)

  • Digital signature

  • Registration certificate from Tourism Department

  • Pan Card

  • Excise Registration (if registered)

  • GST Registration Certificate

  • Proforma Invoice

  • Brochure

  • Self-Certified Copy + Original Certificate of Chartered Accountant

  •  Original Certificate of Chartered Engineer

Export Obligations under EPCG Scheme?

There are two sorts of export obligations under the EPCG Scheme:

Specific Export Obligation: Goods manufactured from the imported machinery to be exported worth six times the taxes, duties, and cess saved on the capital goods within six years from the allocation date of EPCG Authorisation. In the case of authentic sourcing of Capital Goods, specific Export Obligation shall be 25% less than the above Export Obligation.

Average Export Obligation: This obligation is the most significant of the two export obligations under the EPCG Scheme. It typically means that the average turnover maintained in the past three years before getting the license must be maintained for each Financial Year until the specific export duty is completed.

How do find the importers of products that fall under the EPCG scheme?

Under the EPCG scheme, manufacturers can import capital goods for pre-production, production and post-production goods, and importers of machinery without attracting any customs duty on them. Second-hand capital goods may also be imported without any limitation on age under the EPCG Scheme. SEAIR Exim Solutions can assist to render the products that fall under the EPCG scheme. Also, it provides an authentic and updated edition of Import Data to respected customers at a reasonable cost. Our firm contains such information from customs and government offices. This data report aids to know who’s importing, at what amount, from which port, date & time of shipment etc.


Export Promotion Capital Goods are capital goods utilized in the production of products that are exported to other nations. It includes machinery and spares. Therefore, to authorise as EPCG, the commodity manufactured in India should be exported outside India. We deal with a wide range of clients. We furnish sufficient information about India's export-import data, and global trade data, We at Seair Exim Solution have an excellent team of exceptionally skilled and talented employees. Our team consists of highly qualified people who know in & out about all import-export data. If you are looking for trusted global Trade Data, Seair Exim Solution can be of your best assistance. Get well-organized data in a structured and easy way. Contact us at today and get access to import and export data in a simple approach.

  • Seair Exim
  • 08-Aug-2022

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