EPCG Scheme Explained: Save Big on Machinery Imports in 2025
What is the EPCG Scheme?
The Export Promotion Capital Goods (EPCG) Scheme is a government initiative under India’s Foreign Trade Policy that allows manufacturers and service providers to import capital goods (like textile machinery) at zero or reduced customs duty.In return, the importer agrees to fulfill an export obligation — typically 6 times the duty saved — over a period of 6 years.
Key Benefits
- Zero Basic Customs Duty (BCD) on eligible machinery
- Boosts production efficiency by enabling access to global technology
- Reduces upfront capital investment on equipment
- Helps Indian manufacturers remain globally competitive
Who is Eligible?
To qualify for EPCG benefits, you must:- Hold a valid Importer Exporter Code (IEC)
- Be a manufacturer or service provider
- Use machinery for producing exportable goods/services
- Be registered with DGFT and GST
Documents Required for EPCG Registration
| Document | Description |
|---|---|
| IEC Code | Importer Exporter Code |
| PAN & GST | Business identity proofs |
| Proforma Invoice | From overseas supplier |
| Chartered Engineer Certificate | Verifying machinery specs and utility |
| Digital Signature Certificate (DSC) | For online DGFT filing |
How the EPCG Process Works
- Apply online via the DGFT portal
- Submit all required documents
- DGFT reviews and approves the EPCG license
- License is linked to your IEC and port of import
- Begin import at 0% or concessional duty
- Track and fulfill export obligation within 6 years
- File for EODC (Export Obligation Discharge Certificate)
EPCG in Action – A Textile Industry Example
Example: Importing ₹1 crore worth of weaving machines- Duty saved: ₹10 lakhs
- Export obligation: ₹60 lakhs in 6 years
Result: Increased production + zero customs duty + faster market reach
How Harson Exim Helps
Harson Exim offers end-to-end EPCG support:- Application & document handling
- HS code classification & duty calculation
- DGFT filing and follow-up
- Export obligation tracking
- EODC compliance & closure support