EPCG Consultant in India
Import the machinery you need to scale production at zero customs duty, while we manage your licence, obligations and redemption from start to finish.
What Is EPCG?
The Export Promotion Capital Goods (EPCG) scheme allows manufacturer exporters, merchant exporters tied to a supporting manufacturer, and certain service providers to import capital goods — machinery, equipment and spares used for pre-production, production, or post-production — at zero customs duty, in exchange for fulfilling a future export obligation.
The core trade-off is simple: you save on the upfront duty cost of expensive machinery, but you commit to exporting goods worth a multiple of the duty saved (typically 6 times the duty saved, under the current Foreign Trade Policy framework) within a specified period, usually six years. For capital-intensive businesses, this can mean the difference between affording modern machinery now or delaying expansion for years.
Where most businesses run into trouble with EPCG isn't the import itself — it's everything that comes after. Export obligation tracking, annual installment monitoring, and the eventual redemption of the licence with DGFT are all areas where poor record-keeping can turn a duty-saving scheme into a compliance liability, including penalties and interest if the obligation isn't met or properly documented.
As your EPCG consultant, Soumya Enterprises manages the complete lifecycle: assessing whether EPCG is the right fit for your capital expenditure plans, preparing and filing the licence application, helping you import correctly against the licence, and — critically — tracking your export obligation fulfillment year over year so that redemption, when the time comes, is a formality rather than a fire drill.
Key Benefits
Zero Customs Duty on Capital Goods
Import new or, in defined cases, second-hand capital goods without paying basic customs duty, freeing up working capital.
Covers the Full Production Chain
Eligible imports include machinery for pre-production, production and post-production, including testing and quality-control equipment.
Reasonable Obligation Window
Export obligation is typically spread over six years, giving your business realistic time to scale output and meet targets.
Block-wise Obligation Flexibility
Obligation fulfillment is assessed in blocks, giving some flexibility if early years run behind schedule.
Usable by Manufacturers & Service Providers
Both manufacturer exporters and notified service providers can use EPCG to upgrade infrastructure relevant to their export business.
Supports Capacity Expansion
By reducing the upfront cost of machinery, EPCG directly supports capacity expansion and competitiveness in export markets.
Our Process
Feasibility Assessment
We assess your planned capital expenditure against EPCG eligibility and calculate the resulting export obligation.
Licence Application
We prepare and file your EPCG licence application with DGFT, including the required CA/CE certification.
Import Against Licence
We guide your import documentation to ensure customs clearance is processed correctly against the EPCG authorization.
Obligation Tracking
We maintain a year-by-year record of your export performance against the obligation, flagging any shortfall early.
Redemption
Once obligation is fulfilled, we prepare and file the redemption application so your licence is formally closed with DGFT.
Common Mistakes to Avoid
Most delays and lost claims come down to a handful of avoidable errors. Here's what we see most often:
- Underestimating the export obligation multiple before committing to a large capital goods import.
- Failing to track obligation fulfillment year by year, leading to a documentation scramble at redemption time.
- Missing the required Chartered Engineer/Accountant certifications at installation, delaying licence formalities.
- Not accounting for EPCG obligations when planning cash flow, since a shortfall can mean repaying duty plus interest.
Frequently Asked Questions
Who can apply for EPCG?
Manufacturer exporters, merchant exporters linked to a supporting manufacturer, and certain notified service providers with a valid IEC can apply for an EPCG authorization.
What is the export obligation under EPCG?
Under the current Foreign Trade Policy, the standard export obligation is 6 times the duty saved on the imported capital goods, to be fulfilled within 6 years from the date of issue.
Can I import second-hand machinery under EPCG?
Import of second-hand capital goods is allowed in certain defined circumstances, subject to conditions specified in the Foreign Trade Policy and Handbook of Procedures.
What happens if I don't meet my export obligation?
Failure to meet the obligation within the prescribed period can result in payment of the duty saved along with applicable interest, and potential penal action — which is why ongoing tracking is essential.
Can EPCG be used alongside other schemes like RoDTEP?
Yes, EPCG addresses duty on capital goods imports, while schemes like RoDTEP address embedded taxes on exports — they operate on different aspects of your trade and can generally be used together.
How long does EPCG licence issuance take?
Timelines depend on the completeness of documentation and DGFT processing load, but a well-prepared application with correct CA/CE certification moves significantly faster.
Can I import multiple machines under one EPCG licence?
Yes, an EPCG authorization can cover multiple capital goods items, provided each is linked to your declared production or service activity.
Is EPCG available for the services sector?
Yes, certain notified service providers with qualifying export turnover can use EPCG to import equipment relevant to their export of services.
Why Choose Soumya Enterprises?
End-to-End Lifecycle Management: We don't just help you get the licence — we track obligation fulfillment for the full 6-year window through to redemption.
Reduces Redemption-Time Surprises: Because we monitor your export performance continuously, redemption becomes a routine filing instead of a scramble to reconstruct years of records.
CA/CE Coordination: We coordinate the Chartered Engineer/Accountant certifications required at application and installation stages, so paperwork doesn't hold up your import.
Practical, Numbers-First Advice: Before you commit to EPCG, we run the numbers with you so you understand exactly what export obligation you're signing up for.
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