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EPCG Authorisation

EPCG Authorisation is a scheme launched by the Indian government to encourage the production of high-quality products and services for export. Under this system, a firm may import capital goods without a tariff from foreign nations under the Foreign Trade Policy (2015 – 20 RE 17) (0 percent duty). The government has imposed an “export duty” on the importer of capital products as the program implies that exports be promoted. Under existing rules, the duty avoided is six times the export obligation and can be fulfilled within six years.
EPCG Authorization Scheme acts as one of the most advantageous elements to the Indian Exporters. In compliance with this scheme, Export Business Houses do not have to pay huge amounts of money in advance for the imported machinery. The availability of up-to-date technology at their disposal allows them to produce higher-quality goods and services at a faster rate, resulting in increased demand and higher pricing in the international market. It allows the import of capital goods for value addition at Zero Custom duty.

Eligibility Criteria
Manufacturer exporters with or without supporting manufacturer(s), merchant exporters with supporting manufacturer(s), and service providers are all covered by the EPCG Authorisation Scheme. Before the capital goods are installed in the supporting manufacturer’s plant or premises, the EPCG authorization must include the name of the supporting manufacturer

For Manufacturing Exporter
EPCG Authorization scheme allows the export business owners to import capital goods for pre-production, Production, and Post-production at zero customs duty.

Also, EPCG Authorisation allows its holder to procure capital goods from indigenous sources. Until the export duty is fulfilled, the import of capital goods is subject to the actual conditions of the user.

For Merchant Exporter
Merchant exporters can apply for EPCG Authorisation if they have tie-ups with supporting manufacturers for importing capital goods in the supporting manufacturer premises.

Before the installation of the capital goods in the plant of the supportive manufacturer, the name of the supportive manufacturer is endorsed by the EPCG authorization.

In the event of any modifications of supporting manufacturers, the RA is to be informed with the current as well as the altered supporting manufacturer(s) and customs Central Excise Authority of the competent authority at the port of authorization registration for this change.

For Service Providers
EPCG Authorisation Scheme is made available for service providers as well. Before installation of the capital goods at the premises, the names of the service provider(s) should be endorsed with the EPCG authorization.

Until the export duty is fulfilled, the import of capital goods is subject to the actual conditions of the user.

Along with EPCG Authorisation, we also offer Advanced Authorization, MEIS Authorisation, SEIS Authorisation under one roof.


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