How to get EPCG license in India : Step by Step Guide

Get expert assistance for an EPCG license in India

Enviroxperts are reliable consultants in providing a full range of licensing and compliance services. Our team of experts assists manufacturer exporters and supporting manufacturers in understanding the EPCG license framework. We offer extensive support and guidance in the compliance and approvals domain for all kinds of import licenses. Our services include –

We offer:

• Applicant eligibility check
• Machinery and capital goods requirement check 
• EPCG export obligation assessment
• Documents checklist
• EPCG application preparation
• Online registration on the DGFT Portal
• Regulatory guidance
• Application follow-up
• EPCG authorisation issuance
• Machine/goods procurement support
• Machinery installation guidance
• Export obligation discharge certificate (EODC)
• Faster approval 
• Query and complaints rectification

An Export Promotion Capital Goods (EPCG) license is an indispensable certificate for the import of capital goods and machinery by manufacturer exporters, supporting manufacturers, merchant exporters, and service providers. Capital goods and high-end machinery are imported at zero customs duty with EPCG license.

Enviroxperts support and accelerate the licensing process with comprehensive knowledge of technical documents, the registration process, queries, tracking, and other compliance. 

Enviroxperts are your trusted partners in providing an end-to-end EPCG license. We assist export businesses and manufacturers in understanding the complete EPCG framework. 

What is the Export Promotion Capital Goods (EPCG) Scheme?

The EPCG Scheme is a government initiative designed to promote Indian exporters in procuring high-quality capital goods at a very low customs duty cost. This provides financial assistance to exporters and helps them acquire new technology. Indian exporters and their supporting manufacturers can import machines used in the processing of food, metal, textiles, packaging, etc.

Manufacturing exporters and their supporting manufacturers can also import high-quality machine tools, power generator sets, testing instruments, pollution control machinery, etc. Capital goods used in the manufacturing of machinery for the mining sector, agriculture sector, aquaculture sector, animal husbandry, floriculture sector, horticulture, pisciculture, and other sectors are imported by manufacturing exporters. 

The EPCG license is crucial in the country’s export sector, as it aims to eliminate the challenges of infrastructure, reduce transportation costs, and develop a good exporting environment in the country. This will pave the way forward for India's economic growth. 

Documentation and Approvals For EPCG license

An EPCG license is of paramount importance when it comes to the import of eligible capital goods under the EPCG scheme. Before going for the registration process, the entity must declare itself as a manufacturer, exporter, or merchant exporter that is associated with a supporting manufacturer. Also, your name should not be in the negative list of exporters and should not be on the caution list of the RBI (Reserve Bank of India). 

Businesses apply online to the Directorate General of Foreign Trade (DGFT) with the necessary documents. After the completion of the approval process, the exporter can import capital goods at zero customs duty.

The EPCG license is administered under the Ministry of Commerce and Industry of India and is tailored to cater to a wide range of industries. 

List of documents to register for the EPCG license under the EPCG scheme:

DGFT login credentials: Sign up for a DGFT account and create a profile

CA Certificate: Approval of financial details by a practising CA

CE Certificate: Certificate confirming the machinery standards as per the European safety, health, and environmental requirements

Flowchart: Representation of the manufacturing steps using the imported machinery

IEC Certificate: Import Export Code (IEC) issued by the  Director General of Foreign Trade (DGFT) for entities engaged in import and export activities.

GST Certificate: Get a valid GSTIN number for tax details

RCMC (Registration-Cum-Membership Certificate): Issued by the relevant competent authority (DGFT for EPCG licence), confirming the applicant's registration and membership for export-related activities.

HSN code of the item with machine name: It helps identify and classify the capital goods for regulatory and customs purposes.

Export record: Records of the applicant’s export performance for the previous three years, used for assessing export performance, record, remarks, and eligibility, where applicable.

Proforma Invoice of proposed machinery: Quotation from Supplier regarding machine specifications like quantity, value and other relevant details. 

Digital Signature Certificate: To authenticate the EPCG application. 

PAN details of the firm: For establishing the legal identity of the applicant.

Export obligation: Mention a minimum value the exporter can achieve in exchange for the EPCG benefit

Appendix 5A: Form for an EPCG Authorisation application under the prescribed DGFT procedure.

Appendix 5B: Form for obtaining an Export Obligation Discharge Certificate (EODC) after fulfilling the EPCG export obligation. 

Steps for securing the EPCG license 

Check Eligibility – Verify the applicant, business activity, machinery and EPCG eligibility requirements.

Prepare Documents – Collect the required company, export, machinery and supporting documents.

Calculate Export Obligation – Determine the export obligation applicable to the proposed EPCG benefit.

Apply Online to DGFT – Submit the EPCG application with the required documents through the DGFT portal.

Obtain EPCG Authorisation – Respond to any DGFT queries and, upon approval, receive the EPCG Authorisation for the eligible capital goods.

Eligibility Criteria for EPCG license registration

There are certain mandatory regulations for the EPCG registration. Here is the list of guidelines: 

1. No past turnover bar to get a basic EPCG license.

2. Start-ups, new recyclers, and new manufacturing units can apply with zero past export history.

3. Physical assets that a business uses to produce or manufacture products and services that can be used later are termed capital goods. 

4. Import rebate is for capital goods. These are not completed goods. They are used to make finished goods. 

Capital goods include the following:

• Buildings
• Machines
• Equipment
• Vehicles
• Tools

Businesses availing benefits under the EPCG scheme have a multiplier effect on the economy.

Once the finished goods are ready, exporters need to export goods of an export value more than six times the duty saved on the import of capital goods. The time frame for this obligation is six years from the issuance date of authorisation.

Benefits of an EPCG license

The EPCG license offers great financial assistance to businesses dealing in imports of capital goods and high-end machinery. EPCG exempts exporters from customs duty charges and import charges. The government aims at promoting exports; the exporter is required to fulfil the prescribed export obligation within the specified period   

Better opportunity in global markets: The EPCG scheme helps exporters enter new markets with confidence and low investments. Enables export obligation fulfilment: It enables businesses to increase exports more effectively.  It becomes easier for companies using EPCG-imported machinery to find buyers abroad.

Lower Compliance Costs: An EPCG license helps companies lower the cost of compliance with international standards, as you can import machinery, tools, and capital goods at zero customs duty. This serves as proof of a credible business background. 

Optimised Supply Chain Logistics: The EPCG license allows exporters to acquire high-tech material handling and storage equipment, directly cutting down operational delays and logistics expenses.

Subsidised trade: Under its Niryat Protsahan financial pillar, the Export Promotion Mission (EPM)  provides subsidised trade finance and interest subventions. This cash liquidity helps you keep your manufacturing lines running steadily, making it much easier to hit your EPCG export targets on time.

Stronger Export Branding: The promotional support under EPM improves global visibility. This helps products manufactured with EPCG machinery reach wider international markets

Why Choose EnviroXperts?

The EPCG license is necessary for exporters and recyclers engaged in the import of eligible capital goods and machinery into India. It helps businesses optimise their budget and import high-end technology. EnviroXperts provides complete assistance in securing a valid EPCG license and helps in the promotion of the EPCG scheme, which aims at promoting exports and foreign exchange.  

Complete guidance: Get detailed information about the EPCG application process from EnviroXperts consultants. 

Documentation support: Our team helps clients in fulfilling and preparing the mandatory documents.

Online Application on DGFT Portal: Get complete assistance in online filing of the form using the DGFT portal.

Technical documents guidance: Complete details on the eligible capital goods under the EPCG scheme and HSN classification for all the goods, along with technical documentation.

Application tracking and update: Get complete details on application status along with the missing document details, if any. 

Compliance Support: Assistance with post-authorisation requirements and documentation.

EODC certificate assistance: Help in securing an Export Obligation Discharge Certificate (EODC) once the prescribed export is completed.

Follow-up and query Resolution: For any query or confusion, clients can contact the EnviroXperts 24*7 helpline to expedite the process

Businesses seeking an EPCG license must export the finished goods manufactured using the imported capital goods and machinery. The export obligation needs to be fulfilled within a stipulated time frame, which is generally six years from the date your EPCG license is issued. 

With EnviroXperts, you can enjoy a hassle-free EPCG licensing process and avail export benefits. 

Frequently Asked Question (FAQ`s)