EPCG Scheme
Zero customs duty on capital goods import for exporters with 6X export obligation
About This Scheme
The Export Promotion Capital Goods (EPCG) Scheme allows exporters to import capital goods for pre-production, production, and post-production at zero customs duty, subject to an export obligation of 6 times the duty saved over 6 years, administered by DGFT.
Eligibility Criteria
- 1Manufacturer exporters with valid IEC
- 2Merchant exporters with tie-up with supporting manufacturer
- 3Service exporters (hotels, hospitals, IT companies, etc.)
- 4Common Service Providers in SEZs/EPZs
- 5Star Export Houses with relaxed EO norms
Key Benefits
0% customs duty (Basic Customs Duty + IGST exemption) on capital goods
Export Obligation of 6X duty saved over 6 years
20% EO reduction for domestic sourcing of capital goods
Second-hand capital goods (up to 10 years old) also eligible
Up to 25% EO offset through agricultural/handicraft exports
Application Process
Obtain IEC from DGFT portal (dgft.gov.in)
Apply online using Form ANF 5A before importing machinery
Pay EPCG application fee (0.5% of CIF value)
Receive EPCG Authorization from DGFT Regional Authority
Import machinery duty-free and fulfill export obligation over 6 years
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