Duty Free Import of Capital Goods (EPCG Scheme)

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Duty Free Import of Capital Goods (EPCG Scheme)

EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. The EPCG scheme allows duty free import of capital goods new capital goods at NIL Customs duty as against the normal total of 26.428%, thus providing a total duty saved of import value. EPCG comes with condition that export obligation to be fulfilledthat equivalent to 6 times of duty saved, to be done over a period of 6 years. The export obligation needs to be fulfilled by the license holder.We are Chartered Accountant firm provide EPCG Scheme DGFT Services in Pune.

Conditions for Import Under EPCG Scheme

Import of capital goods shall be subject to Actual User condition till the export obligation (E.O.) is completed. The following shall apply to the fulfillment of the export obligation:-

  • Physical Exports
  • Deemed Exports
  • Royalty Payments received in Freely Convertible Currency
  • Foreign exchange received for R& D services
  • Supplies to SEZ Units / Supplies to Developers/Co-Developers
  • Port Handling Services
  • Export Obligation can be fulfilled by export of goods Manufactured / Services rendered by the Applicant

Highlights of EPCG Scheme

Export Obligation

The export obligation needs to be fulfilled by the export of goods or services capable of being manufactured or produced by the use of the capital goods imported under the scheme.

Duty Free Import of Capital Goods

EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources.

Export Obligation Calculation

In case of direct imports, EO shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, EO shall be reckoned with reference to notional Customs duties saved on FOR value

What We Offer

Personal Consulting on EPCG
Legal Documents
DGST DSC
Filing of EPCG
EPCG Approval