Import capital goods for your plant without paying customs duty. In return you export goods or services worth a multiple of the duty you save within the set period. We run the licence from the first filing to its close.
Pick what you need. Our team then checks it against your export plans.
What do you need to bring in?
EPCG fits
Your capital goods come in without customs duty. In return you promise exports worth a multiple of the duty you save. If you already export these goods your usual exports must keep up as well.
EPCG fits
You can buy them from a manufacturer in India under the licence. Your export obligation is then lower than for imported capital goods. Your average exports stay the same.
MOOWR fits better
EPCG asks for exports. Under MOOWR the duty on your capital goods waits for as long as they work in your plant. There is no export target.
EPCG sits on top of your export registrations. Have these in place first.
IEC
GST registrationGST
RCMCRCMC
Digital signatureSignature
EPCG licenceEPCG
The papers DGFT and customs ask for
Company papers
Your IEC, GST certificate and RCMC.
Your plant
The plant where you will install the capital goods. If another firm manufactures your export goods add its plant too.
The capital goods
The supplier's proforma invoice with each item's description, HS code and value.
What you will export
The goods you will manufacture with them and their HS codes.
Chartered engineer's certificate
It links each item to the goods you will export.
Your past exports
A certificate from your CA or cost accountant of your exports of the same and similar goods. It sets your average. If you have none your average is nil.
Bond
You sign it with customs when we register the licence at your port. For capital goods you buy in India it goes to DGFT instead.
Bank guarantee
From your bank for part or all of the duty saved. Many exporters need none. We check which applies to you.
How we run your EPCG licence from start to close
We prepare and file each step. You sign where the law asks you to.
We prepare the file and arrange the chartered engineer's certificate. We file it on the DGFT portal. You sign with your digital signature or Aadhaar e-sign.
We register the licence at your port. You sign the bond. You add a bank guarantee only if your export record calls for one.
We clear them at the port under the licence. You pay no customs duty on them.
An independent chartered engineer or your local customs office confirms they are installed. We arrange the certificate and file it with DGFT.
We put your licence number on each shipping bill. Then we count each export towards the obligation.
Once your exports meet the obligation we apply for the discharge certificate. We take it to customs at your port. Customs then releases your bond and bank guarantee.
How we keep your EPCG licence on track
The licence runs for years. These are its duties and what we do for each.
Licence on the shipping bill
Each export
We put your licence number on each one. Exports through another exporter do not count without it. On your own exports it saves extra proof at closure.
Average exports
Every year
If you already export these goods we check that your usual exports keep up. Only exports above that level count towards the obligation.
Installation certificate
After your imports
We arrange the chartered engineer's visit and file the certificate with DGFT.
Export reports
At each stage
DGFT wants a report on your exports once the first block ends and then until the period ends. We prepare each one and get it certified by a CA, cost accountant or company secretary.
Bank guarantee
All the time
We watch its expiry date and remind you to renew it in good time.
Capital goods stay with you
Until it closes
They must stay in your plant and work for your exports. We file the papers if you move them to another of your plants.
More time
When exports run short
We apply to DGFT for more time before the period ends. If it has already ended we can still ask, for a higher fee.
Changes to the licence
When plans change
We amend it when you add an item or a new export product.
Where EPCG licences go wrong
Most trouble only shows up when you try to close the licence.
What goes wrongWhat we do
What goes wrong: Shipping bills leave out the licence number. Exports through another exporter then do not count. Your own need extra proof at closure.
What we do: We put it on every shipping bill and check each one before it is filed.
What goes wrong: Exports dip below your yearly average and nobody notices until the end.
What we do: We check your exports against the average every year and warn you early.
What goes wrong: The installation certificate is never filed. The licence cannot close.
What we do: We arrange the chartered engineer and file the certificate before it falls due.
What goes wrong: Exports fall short at DGFT's first check and nobody asks for more time.
What we do: We track each stage and apply for more time before it ends.
What goes wrong: Capital goods move to another plant without a fresh certificate.
What we do: We file the papers before anything moves.
What goes wrong: DGFT issues the discharge certificate but the bank guarantee stays with customs.
What we do: We take the certificate to customs at your port. We follow it up until customs releases your bond and bank guarantee.
From the port to your plant and back out
The licence ties your imports to your exports. We handle both ends.
Port to plant
We clear your capital goods at the port and truck them to your plant.
Exports that count
We pack your export orders in our warehouse. Then we clear them at the port under your licence number.
One set of papers
The same team files with DGFT and at customs. So your licence and your shipping bills match.
EPCG stands for Export Promotion Capital Goods. It lets you import capital goods for your plant without customs duty. In return you export goods or services worth a multiple of the duty you save within the set period. Spares, moulds, dies and tools count too. It runs under the current Foreign Trade Policy.
How is the export obligation under EPCG calculated?
First we work out the duty you save. That is the customs duty, IGST and cess you would have paid on the capital goods. You then export goods or services worth a multiple of that within the period the licence sets. Supplies in India that count as deemed exports count too. Capital goods bought in India carry a lower obligation.
What is the average export obligation under EPCG?
It is what you already export of the same and similar goods in a normal year. DGFT works it out from your recent years. If you have not exported these goods before it is nil. You keep it up while the licence runs. A strong year can cover a weak one in the same block. Only exports above it count towards the EPCG obligation. Some sectors need not keep it at all, such as handicrafts, handlooms, farming, fisheries, dairy, carpets, coir and jute.
Is GST exempt under the EPCG scheme?
The IGST and cess at the port are waived along with the customs duty. This holds when you meet the obligation by shipping goods out of India.
Is a bank guarantee required for EPCG?
It depends on your record. When we register the licence at your port you sign a bond with customs. Many exporters need no bank guarantee with it: status holders, public sector firms and exporters with a steady record of exports or GST paid. Most other manufacturers give a guarantee for part of the duty saved. A new business with no record may have to cover all of it. Customs releases the bond and any guarantee once the licence closes.
When is the EPCG installation certificate due?
Within the set time after your imports are complete. An independent chartered engineer certifies that the capital goods are installed at your plant. Your local customs office can certify it instead. We arrange it and file it with DGFT. Without it the licence cannot close.
Is an EPCG licence transferable?
No. The capital goods must stay with you and work for your exports until the licence closes. To sell them sooner you first leave the scheme: you pay the duty for the exports still due with interest. You can move them to another of your own plants listed on your IEC and RCMC with a fresh installation certificate.
Can I extend the EPCG export obligation period?
Yes. DGFT can give you more time within limits. We apply before the period runs out. If it has already ended you can still ask, for a higher fee.
What happens if the export obligation is not fulfilled under EPCG?
You pay back the duty for the part you missed plus interest. If it stays unpaid customs can claim it from your bond and bank guarantee. DGFT can also refuse you new licences. If you never imported you can surrender the licence with no penalty.
What is the meaning of EODC?
EODC stands for Export Obligation Discharge Certificate. DGFT issues it once your exports meet the obligation. People also call it the redemption letter. Customs needs it to cancel your bond and release your bank guarantee.
What is the EPCG closure procedure?
First we link every shipping bill and export payment to the licence. The installation certificate and the certified export report must be in place too. Then we apply for the EODC on the DGFT portal and you sign. Once DGFT issues it we take it to customs at your port. Customs then cancels the bond and releases your bank guarantee.
What is the difference between EPCG and Advance licence?
EPCG is for capital goods, the equipment on your line. Advance Authorisation is for the inputs that go into your exports. You can hold both at once.
