Use EPCG Scheme and Improve your Global Trade.

The Export Promotion Capital Goods (EPCG) Scheme is an Indian government initiative designed to facilitate the import of capital goods at zero or concessional customs duty to enhance the manufacturing competitiveness of Indian exporters. By reducing the initial cost of acquiring technology, the scheme encourages businesses to upgrade their production capabilities for the global market.

Core Objective
The primary goal of the scheme is to enable exporters to source machinery, equipment, and technology—for pre-production, production, and post-production—without the immediate financial burden of customs duties. This allows manufacturers and service providers to produce higher-quality goods and services more efficiently.

Participation and Scope
The scheme is available to various types of exporters, including manufacturer exporters, merchant exporters tied to supporting manufacturers, and service providers. Eligible capital goods covered under the scheme include:

Machinery and equipment

Computer systems and software

Spares, moulds, dies, jigs, fixtures, and tools

Catalysts for initial and one subsequent charge

Export Obligation
To balance the duty exemption, the exporter must fulfill an "export obligation". This requires the beneficiary to export finished goods worth six times the actual amount of customs duty saved within a period of six years from the date the authorization is issued. Failure to meet these targets can lead to penalties and the requirement to pay the saved duties with interest.