Export Promotion Capital Goods (EPCG) Authorization

The Export Promotion Capital Goods (EPCG) Authorization is a specialized trade facilitation scheme issued by the Directorate General of Foreign Trade (DGFT) that allows Indian exporters to import capital goods for pre-production, production, and post-production at zero customs duty. The primary objective is to promote Indian exports by upgrading technology and reducing upfront machinery costs.In exchange for this duty exemption, the importer commits to a mandatory Export Obligation (EO), promising to generate a specific value of foreign currency earnings within a defined timeline. Dual Commitments: Export Obligations An authorization holder must concurrently fulfill two types of obligations 1.     Specific Export Obligation (SEO): Exporters must export finished goods or services worth 6 times the actual customs duty saved. This obligation must be completed within 6 years from the date the authorization is issued.       I.   ...