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DGFT scheme

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Export Promotion Capital Goods Scheme

EPCG allows duty-free import of capital goods against an export obligation equal to 6 times the duty saved, to be fulfilled within 6 years. Designed for exporters modernising plant and machinery.

Scheme snapshot

CodeEPCG
AuthorityDGFT, Department of Commerce
RateCustoms duty saved at import (~25 to 30 percent of CG value, depending on item)
WindowApplication via DGFT portal before capital goods import
ProcessingAuthorisation in 30 to 60 days; closure after EO fulfilment
Last amendedForeign Trade Policy 2023 (continuing)
Annual outlayRs 6,200 crore in duty foregone (estimated)

Who is eligible

  • Manufacturer exporters
  • Merchant exporters tied to supporting manufacturer
  • Service providers

Prerequisites

  • 01Valid IEC
  • 02RCMC from relevant export promotion council
  • 03Manufacturing or service activity nexus
  • 04Export obligation plan

Common rejection reasons

  • ×Capital goods imported before EPCG authorisation issued.
  • ×Export obligation not fulfilled in block periods (4 years + 2 years).
  • ×Wrong nexus declared between CG and the products exported.
  • ×Domestic procurement option not exercised when DGFT mandates.

How to apply

The application route differs by scheme. For EPCG, the working sequence is below.

1

Determine your manufacturing nexus and the capital goods you intend to import.

2

Apply via the DGFT portal for EPCG authorisation before importing the capital goods.

3

Import the capital goods duty-free against the authorisation.

4

Begin fulfilling the export obligation (6x duty saved over 6 years).

5

Submit annual progress reports to DGFT.

6

On EO fulfilment, apply for closure with documentation.

See if you qualify

Run a free audit specific to EPCG.

Upload your last quarter of shipping bills. We compute your specific EPCG entitlement and surface the gaps in your current filings.

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