Under the EPCG Scheme, We are going to learn about Export Promotion Capital Goods. We will discuss about replacing machinery without financial burden. In this scheme, we enable the exporters to import capital goods at zero or concessional duty, thereby keeping initial costs negligible.
In this page, we’ll look at how this scheme works, its benefits for exporters, and practical tips to increase its potential. This is how you can invest, produce on a large scale, and remain competitive across the globe.
Export Promotion Capital Goods (EPCG) scheme:
An EPCG Scheme is a government scheme which permits exporters to import capital goods, for instance, machinery, equipment, or technology, at zero/customs duty exemption. In exchange, the exporter commits to attain an export target, usually six times the duty foregone, in a span of six years.
How does it matter? Capital goods are expensive. For a majority of companies, the imports duty alone breaks or makes the investment equation. Under EPCG, this barrier falls, and changes technology easily, reducing production costs, and stay competitive in the global arena. This scheme rewards those with good planning and disciplined execution.
Falcon Freight is India’s trusted partner for freight forwarding, customs clearance, and global shipping. We boast with 30+ years of experience and a presence across all major ports. We ensure competitive logistics from documentation to doorstep delivery.
For more information:
Phone No. :- +91 9311595648
Email:- [email protected]
First of all, you apply to the DGFT (Directorate General of Foreign Trade) for export documentation and License. Once approved, this license bestows you the consent to import legible capital goods, machinery, tools, and equipment, at zero/customs duty exemption.
Import of capital goods:
With the license in your hand, you fetch the equipment you need for your export business. It could be printing machinery or IT servers, or simply anything that assists you in producing something or providing a service for global markets.
Beware of the catch:
Export obligation is the necessary requirement for exporters, often under schemes like EPCG , to export a specific value or quantity of goods/services within a specific timeframe. It is a commitment to generate foreign exchange, generally in return for importing raw materials or capital goods at reduced / zero customs duty.
Export obligation is the necessary requirement for exporters, often under schemes like EPCG , to export a specific value or quantity of goods/services within a specific timeframe. It is a commitment to generate foreign exchange, generally in return for importing raw materials or capital goods at reduced / zero customs duty.
Average Export Obligation (AEO) is a mandatory requirement under the EPCG to maintain the average yearly export performance of similar products achieved in the preceding three licensing years. The Average Export Obligation is NOT calculated based on the duty you had saved. Instead, it is based on the past performance.
Proof of compliance :
Once you’ve fulfilled your obligations, you go back to DGFT (Directorate General of Foreign Trade) office and apply for an Export Obligation Discharge Certificate (EODC). This certificate is the authentic official proof that you’ve done your part and your duty savings are fully legitimized.
Falcon 18 is a leading provider of import-export consultancy, customs clearing, and freight forwarding services. The company specializes in sourcing, cargo consolidation, and logistics, particularly for shipments between China (Guangzhou) and India.
For more information:
Phone No. :- +91 9311595648.
Email :- [email protected]
Before you run to apply, here’s your checklist:
- IEC (Importer-Exporter Code) copy
- RCMC (Registration-cum-Membership Certificate) from the relevant Export Promotion Council
- Digital Signature Certificate (DSC) of the applicant
- Chartered Engineer certificate justifying the requirement for machinery.
- Proforma invoice or supplier quotation of the capital goods (machinery, tools, molds, testing equipment)
- Self-certified copy of PAN and GST registration
- Application in ANF (Aayat Niryat Form) prescribed by DGFT (Directorate General of Foreign Trade)
- Past export performance records (for AEO compliance)
Who Benefits from the EPCG Scheme?
Eligible entities include:
1. Manufacturer exporters: with or without supporting manufacturers
2. Merchant exporters tied to supporting manufacturers
3. Service providers, including hotels, logistics companies, IT firms, and hospitals.
Eligibility mainly relies on holding a valid Import Export Code (IEC) and showing clear intent and capability for export production. Businesses with consistent export history and significant capital investment needs often benefit the most.
After the digitalisation of the EPCG licence application process, the businesses can apply through its online portal. Before you apply, make sure that you possess all the relevant documents verified and formatted correctly for upload to avoid delays.
Vital documents necessary for EPCG application:
- Import Export Code (IEC)
- Registration cum Membership Certificate (RCMC) from the relevant export promotion council.
- Digital Signature Certificate (DSC) .
- PAN card and GST registration certificate.
- Proof of manufacturing such as MSME, SSI, or IEM certificates as desired.
- Proforma invoice with specifications like CIF value, and HS code of capital goods.
- Professional certificates from CA, Cost Accountant, or Company Secretary, and Chartered Engineer, in the prescribed formats (Appendix 5B and 5A).
Step-wise online application process:
1. Register on the DGFT portal and log in with the IEC details
2. Open the ANF 5A form and fill in the pre-requisite details
3. Upload supporting documents in the prescribed format
4. Sign the application digitally, pay the applicable fee online, and submit
5. Track application status on the portal and respond to any follow-ups if asked.
6. Once approved, the EPCG licence is generally issued quickly, depending on verification and processing.
Latest Updates on EPCG IN 2026: The Indian Government has launched Rs. 497 crore “ RELIEF” scheme to support exporters affected by West Asian logistics turbulences. Handloom exports got support of Rs. 25,060 Crore Export promotion Mission.
latest Updates for Export Promotion:
The RELIEF (Resilience & Logistics Intervention for export Facilitation) scheme extends Insurance support for shipments. This scheme benefits shipments to UAE, Saudi Arabia, Qatar etc between February 14 and june 15, 2026, covering 100% losses.
Electronics & Computer Software Export Promotion Council reported a 32.47% growth, Smartphone exports hit an estimated $24.14 billion.
A ₹25,060 crore mission focussed on MSMEs through Niryat Protsahan and Niryat Disha.
EPCES announced benefits until March 31, 2026, and extending hybrid working flexibility for until Dec 31, 2027.
The Services Export Promotion Council indicated that India-UK FTA discussions are waiting for April 2026 for operations, following flourishing India-Russia trade ties.
Conclusion
The EPCG scheme is an invaluable path for Indian exporters to enhance technology and expand capacity in the absence of the burden of high import duties. Duty-free access to machinery enables better quality, improved efficiency, and stronger competitiveness across sectors.
Meeting export obligations on time, keeping paper work accurate, and staying aligned with evolving compliance rules helps avoid penalties and runs operations smoothly. With meticulous planning and the right digital tools to track progress, exporters can use EPCG to build long-term export growth.
Falcon 18 is a leading provider of import-export consultancy, customs clearing, and freight forwarding services. The company specializes in sourcing, cargo consolidation, and logistics, particularly for shipments between China (Guangzhou) and India.
For more information:
Phone No. :- +91 9311595648.
Email :- [email protected]
FaQ's
What is the EPCG Scheme in India?
The Export Promotion Capital Goods (EPCG) Scheme allows exporters to import capital goods like machinery and equipment at zero or concessional customs duty. In return, exporters must fulfill a specific export obligation within a given time frame.
What is the export obligation under the EPCG Scheme?
Under the EPCG Scheme, exporters are required to achieve an export obligation of typically six times the duty saved on imported capital goods, within a period of six years.
Who is eligible to apply for the EPCG Scheme?
Manufacturer exporters, merchant exporters, and service providers such as logistics companies, hotels, and IT firms with a valid Import Export Code (IEC) are eligible to apply for the EPCG Scheme.
What documents are required for an EPCG license?
Key documents include IEC certificate, RCMC, Digital Signature Certificate (DSC), PAN, GST registration, proforma invoice of machinery, and a Chartered Engineer certificate, along with export performance records.
HEAD OFFICE
Year of Establishment : 1989
Primary Business Type : Service Providers
Estimated Annual Sales (USD) : 2 to 5 Million
HEAD OFFICE ADDRESS
F90/25, First Floor, Okhla Phase 1, New Delhi 110020, India.
E-mail : [email protected]
