Step 1 — Understand Eligibility for EPCG Scheme
You can apply for EPCG if your business is engaged in:
- Manufacturing of exportable goods
- Service exports (e.g., hotels, tourism, logistics, IT services)
- Merchant exporters tied to supporting manufacturers
Capital goods that qualify include:
- Machinery, equipment, tools
- Spares, dies, jigs, fixtures
- Computer systems and software for services
- Packaging machinery
Duty benefit: Basic Customs Duty = 0%
Step 2 — Check Export Obligation Requirements
Under EPCG, the importer must meet two types of export obligations (EO):
- Specific Export Obligation (SEO):
- 6x (six times) of the duty saved amount
- Must be completed within 6 years
- Average Export Obligation (AEO):
- Maintain past average exports (not applicable to new units)
Step 3 — Collect Required Documents
You will need:
- IEC (Import Export Code)
- GST registration
- PAN of entity
- Registration-cum-Membership Certificate (RCMC)
- Chartered Accountant / Engineer certificate for capital goods
- Details & technical specifications of machinery
- Proforma invoice from supplier
- Manufacturing/service process flowchart
- Export performance statements (past years)
- Digital Signature Certificate (DSC)
Step 4 — Register on DGFT Portal
Go to: https://dgft.gov.in
- Create user login
- Link IEC
- Update profile
- Add DSC
- Verify email and mobile
This enables EPCG application under the Online System.
Step 5 — File the EPCG Application (ANF 5A)
Steps on DGFT portal:
- Go to Services → EPCG → Apply for EPCG Authorization
- Select ANF 5A Form
- Fill details:
- Capital goods description
- Duty saved amount
- Specific EO & AEO details
- Export product details (ITC HS codes)
- Upload mandatory documents
- Pay government application fee
- Submit to Regional Authority (DGFT)
Step 6 — DGFT Scrutiny & Clarifications
DGFT may ask for:
- Technical justification for machinery
- Manufacturing/service process notes
- Export projections
- Additional certificates
Respond promptly through the online portal.
Step 7 — Receive EPCG Authorization
Once approved, you will receive:
- EPCG License / Authorization
- Valid for 18 months to import capital goods
- Contains details of:
- EODC conditions
- Export obligation period
- Duty saved amount
- Port of registration
Use the license to claim zero customs duty at import.
Step 8 — Import Capital Goods Duty-Free
At the time of import:
- File Bill of Entry
- Submit EPCG Authorization
- Provide Bond/BG if required
- Maintain installation certificate of machine
Step 9 — Fulfill Export Obligation
Over the next 6 years:
- Achieve 6x of duty saved exports
- Maintain average exports
- Keep shipping bills, e-BRC copies, invoices
Export performance must be linked to the EPCG Authorization.
Step 10 — File Annual Returns
Every year, file:
- EPCG Annual Report through the DGFT portal
- Export performance statement
- Installed machinery certificate
Late filing attracts penalties.
Step 11 — Obtain EODC (Export Obligation Discharge Certificate)
After completing EO:
- File EODC request on DGFT portal
- Submit supporting documents
- DGFT verifies shipping bills via ICEGATE
- EODC is issued online
This completes your EPCG compliance.
Documents Required for EODC Filing
- EPCG Authorization copy
- Installation certificate from Chartered Engineer
- Shipping bills
- e-BRC (Bank Realisation Certificates)
- CA certificate of export details
- Duty saved calculation sheet
- EO summary
- Self-certified copies of invoices
Timeline Overview
| Stage | Approx. Time |
|---|---|
| EPCG Application | 5–15 days |
| DGFT Approval | 15–45 days |
| Import of Machinery | As per business needs |
| Export Obligation Period | 6 years |
| EODC Processing | 1–3 months |
Common Mistakes to Avoid
- Incorrect calculation of export obligation
- Missing documents at DGFT scrutiny
- Delay in annual EPCG returns
- Not maintaining installation certificate
- Using imported machinery for non-eligible activities
- Mixing exports across authorizations
Benefits of EPCG Scheme
- Zero customs duty on capital goods
- Lower production costs
- Improved competitiveness in global markets
- Support for modernization
- Beneficial for both manufacturers and service exporters
Saving Mantra EPCG Support (CTA)
We help with:
- EPCG eligibility analysis
- Preparation of ANF 5A application
- Uploading documentation to DGFT
- Responding to DGFT queries
- Post-import compliance & annual returns
- EODC filing support
CTA for WordPress:<a href="/contact">Talk to Saving Mantra EPCG Experts</a>
FAQ
Q: How much export obligation must I complete?
A: Six times the duty saved on imported machinery, within 6 years.
Q: Can I import second-hand machinery under EPCG?
A: No. Only new capital goods are allowed.
Q: Can merchant exporters apply?
A: Yes, if linked with supporting manufacturer.
Excerpt (for WordPress summary)
A complete step-by-step guide to the EPCG Scheme for duty-free import of capital goods. Learn eligibility, documentation, DGFT filing process, export obligation rules, and how to get EODC.
Disclaimer (add to bottom of post or footer)
Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. EPCG regulations and DGFT procedures may change over time, and compliance requirements can vary depending on industry, export category, and government notifications. Saving Mantra is not responsible for any errors, omissions or interpretations. Businesses should consult an authorized DGFT consultant, Customs expert, or legal advisor before making decisions under the EPCG Scheme.