EPCG LICENSE
EPCG License – Your Gateway to Duty-Free Capital Goods Import
The Export Promotion Capital Goods (EPCG) License is one of the most beneficial schemes under the Foreign Trade Policy of India. It allows businesses to import capital goods such as machinery, equipment, and spare parts at zero customs duty, provided they commit to exporting goods worth six times the duty saved within a set time frame.
For exporters and manufacturers aiming to scale globally, the EPCG License is more than a cost-saving tool – it’s a catalyst for growth, competitiveness, and technological advancement.
What is the EPCG Scheme?
The EPCG Scheme, introduced by the Directorate General of Foreign Trade (DGFT), is designed to boost India’s export capabilities by helping industries upgrade their technology without the burden of high import duties. By reducing the upfront capital investment, it empowers Indian businesses to compete effectively in the global market.
Key Highlights:
Zero or Concessional Customs Duty on imported capital goods.
Obligation to fulfill export performance within 6 years from license issuance.
Covers manufacturing, agriculture, service providers, and more.
Who Can Apply for an EPCG License?
The scheme is open to:
Manufacturer Exporters – Direct producers of goods for export.
Service Providers – Tourism, hospitality, logistics, healthcare, etc.
Merchant Exporters tied to manufacturers – Who ensure goods are produced for export.
Benefits of EPCG License
Massive Cost Savings – Import capital goods duty-free, reducing production costs.
Technology Upgrade – Access to the latest machinery and global technology.
Increased Competitiveness – Offer better quality products at competitive prices.
Flexible Sourcing – Import from any country without high tariff barriers.
Wide Applicability – Works for multiple sectors from engineering to textiles.
Why Choose SKJ Business Solutions LLP for EPCG License Services?
With 45+ years of expertise in foreign trade consulting, SKJ Business Solutions LLP ensures a hassle-free EPCG process:
End-to-end assistance from eligibility check to redemption.
Expert documentation and DGFT liaison.
Guidance on post-issuance compliance to avoid penalties.
Fast and reliable service for businesses across India.
Common Challenges & How We Solve Them
Complex Documentation – We prepare and verify every document.
Delayed Approvals – Our DGFT experience speeds up your application.
Export Obligation Tracking – We help you monitor and meet targets on time.
Penalty Avoidance – Our compliance strategies ensure zero penalty risk.
Documents Required for EPCG License
Importer Exporter Code (IEC)
Registration-cum-Membership Certificate (RCMC)
Proforma Invoice of Capital Goods
Past Export Performance Statement
PAN & GST details
Technical Specifications of machinery
Post-EPCG Compliance
After obtaining the license, you must fulfill your export obligation within 6 years. This includes maintaining accurate export records and submitting periodic reports to DGFT. Failure to comply can result in penalties and payment of saved duty with interest.
The EPCG License is a golden opportunity for exporters and manufacturers to enhance capacity, reduce costs, and improve product quality. Partnering with experts like SKJ Business Solutions LLP ensures your journey is smooth, compliant, and profitable.
Contact Us Today – Unlock your EPCG benefits and grow your global presence!