EPCG - DIRECT IMPORT

Introduction of EPCG​ - DIRECT IMPORT

The EPCG Direct Import facility is one of the most beneficial options under the Export Promotion Capital Goods (EPCG) Scheme. The Export Promotion Capital Goods (EPCG) Scheme is a flagship initiative under the Foreign Trade Policy (FTP) of India, designed to promote exports by enabling the import of capital goods at zero customs duty. The scheme encourages Indian exporters and manufacturers to modernize their production facilities using advanced international technology, making their products globally competitive.

At BEST EXIM and Industrial Services, we provide complete professional support for EPCG Direct Import, ensuring that businesses get the maximum benefits under the scheme without facing compliance issues or delays.

Overview of the EPCG Scheme

Under the EPCG Scheme, an exporter or manufacturer can import capital goods—such as machinery, equipment, and spares—without paying customs duty, provided they commit to fulfilling an export obligation equivalent to six times the duty saved within a six-year period from the date of license issuance.

The imported capital goods must be used for producing goods or services meant for export, helping India’s industrial sector become globally competitive while promoting sustainable export growth.

Eligibility for EPCG Direct Import

The following entities are eligible to apply for an EPCG License:

  1. Manufacturer Exporters directly producing export goods.
  2. Merchant Exporters tied up with supporting manufacturers.
  3. Service Providers engaged in export of services (IT, hotels, healthcare, logistics, etc.).
  4. Common Service Providers (CSPs) providing services to multiple exporters, such as tool rooms or testing centers.

The applicant must hold an Importer-Exporter Code (IEC) and fulfill other conditions prescribed by DGFT.

Validity and Conditions

  • License Validity: The EPCG Authorization is valid for 18 months for import of capital goods from the date of issue.
  • Export Obligation (EO) Period: The exporter must fulfill the export obligation within six years from the date of issue of the EPCG License.
  • Maintenance of Records: Importer must maintain detailed records of imports, exports, and usage of capital goods.
  • Installation Certificate: The imported machinery must be installed within six months from the date of import, certified by a Chartered Engineer.
  • Technology Upgradation: Replacement of old machinery with new, more efficient equipment is allowed under EPCG, subject to DGFT approval.

Benefits of EPCG Direct Import

  1. Zero Customs Duty on capital goods import.
  2. Reduced Production Costs through modern technology.
  3. Improved Export Competitiveness by upgrading production quality.
  4. Faster Growth through enhanced manufacturing efficiency.
  5. Global Market Expansion with high-standard products.

The scheme supports both direct exporters and supporting manufacturers in achieving long-term export success.

How Best EXIM and Industrial Services Helps

At BEST EXIM and Industrial Services, we offer end-to-end assistance under the EPCG Direct Import Scheme, including:

  • Eligibility assessment and documentation preparation.
  • Application filing and coordination with DGFT authorities.
  • Guidance on sourcing capital goods from international suppliers.
  • Customs clearance support and post-import compliance.
  • Monitoring and assistance in fulfilling export obligations.
  • Redemption and closure of EPCG Authorization after completion of EO.

Conclusion

The EPCG Direct Import Scheme is a valuable opportunity for exporters and manufacturers to grow through technology upgradation. With expert guidance from BEST EXIM and Industrial Services, you can enjoy a smooth, compliant, and cost-effective experience while benefiting fully from the EPCG scheme.

BEST EXIM and Industrial Services – Your trusted partner for EPCG Direct Import and DGFT compliance across India.