Export Promotion Capital Goods (EPCG) Scheme: Zero-Duty Import

The Directorate General of Foreign Trade (DGFT) removes the requirement of submitting physical duty payment challans while applying for Export Obligation Discharge Certificates (EODC) under the Advance Authorisation and Export Promotion Capital Goods (EPCG) Schemes. The update relates to the processing of EODC applications under these trade promotion schemes.

Export Promotion Capital Goods (EPCG) Scheme:

Dimension	Key Details
Type	It is a trade promotion scheme implemented by the Indian government.
Core provision	It allows the duty-free import of capital goods for the purpose of export production in India.
Operationalisation date	It is first operationalized on 1 April 2015.
Objective	The objective of the scheme is to facilitate import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness.
Administering authority	The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT).
Governing framework	The EPCG scheme is governed by the Foreign Trade Policy of India.
Customs duty benefit scope	The EPCG scheme allows import of capital goods for pre-production, production, and post-production at zero customs duty.
Coverage	It covers categories: manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s), and service providers.
Prohibited items	Second-hand goods of any nature will not be permitted under the EPCG scheme.