The Export Promotion Capital Goods (EPCG) scheme opens zero-duty import of manufacturing machinery — fresh equipment, spares, tooling and, conditionally, refurbished machinery — against an export obligation. On a plant expansion bringing in ₹10 crore of equipment, the duty saved alone can finance the next production line.
The obligation math
The standard obligation equals six times the duty saved, dischargeable over six years from licence issuance, with block-wise milestones. Shortfall at any block invites duty demands with interest — which is why the licence should match exports you will genuinely make, not the maximum imaginable.
What customs scrutinizes
- Nexus linking the imported machine with the declared export product.
- Installation plus commissioning certificates inside the statutory window.
- Yearly export-obligation returns filed with zero gaps.
- Average export performance sustained alongside the defined obligation.
Installation proof, done right
Engineer certification with geo-tagged installation records and prompt DGFT intimation turns an exposed licence into an unchallengeable one. We oversee the full evidentiary chain — most disputes we take on trace to installation files missing since year one.
Closing with EODC
After the obligation is fulfilled, redemption calls for export-proof compilation, customs verification and the Export Obligation Discharge Certificate — which frees your bank guarantee and shuts penal exposure permanently. A clean EODC separates an EPCG licence held as an asset from one carried as a liability.