EPCG (Export Promotion Capital Goods scheme )

EPCG

Export Promotion Capital Goods Scheme

What is EPCG Scheme?

This is a Scheme which 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 value equivalent to 6 times of duty saved on the importation of such capital goods within 6 years from the date of issuance of the authorization. In simple words, there is a compulsion on the business to bring in foreign currency which is equal to 600 percent of duty saved on such importation measured in domestic currency. This is to be done within six years from availing the Export Promotion Capital Goods scheme,

How to obtain an EPCG License?

In order to obtain a License under EPCG scheme, it is a primary requirement to file an application with the licensing authority of DGFT  (Director General of Foreign Trade). The application shall be attached with the required documents along with the company and personal details.

Documents required for EPCG License

The issuing authority is the licensing authority – Director General of Foreign Trade (DGFT). ANF 5B is to be filled along with Self-certified copies of the followings:

• 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 of Certificate of Chartered Accountant
• Self-Certified Copy + Original of Certificate of Chartered Engineer