Consulting And Compliance

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Experienced DGFT Consultants Helping Indian Exporters Stay Compliant!

What is the EPCG Scheme?

The EPCG Scheme is a premier initiative under India’s Foreign Trade Policy that allows exporters to import capital goods for pre-production, production, and post-production at 0% Customs Duty. In exchange, the importer commits to a Specific Export Obligation, exporting goods worth six times the duty saved within 6 years duration.

Key Benefits of the EPCG Scheme

  • Zero Initial Capital Outlay: Eliminate customs duty on capital goods to significantly reduce your upfront technology and machinery acquisition costs.
  • Enhanced Competitiveness: Lower production costs enable you to price products more aggressively and effectively in competitive international markets.
  • Technological Upgradation: Access the world’s finest machinery and tools to improve your overall product quality and manufacturing efficiency.
  • Wide Coverage: Comprehensive benefits available for manufacturer exporters, merchant exporters, and service providers across various industrial sectors.
  • IGST & Compensation Cess Exemption: Boost your business liquidity by exempting integrated taxes and compensation cess on all eligible imports.

Common EPCG Problems We Solve

DGFT Rejections

Resolving complex nexus issues and classification disputes for application approval.

Wrong EO Calculation

Correcting duty-saved discrepancies to prevent inflated export obligation targets.

Installation Delays

Extending timelines when machinery cannot be commissioned within six months.

Bank Guarantee Issues

Facilitating the fast release of bonds after license closure completion.

Redemption Hurdles

Solving shipping bill mismatches during the final EODC submission process.

Types of EPCG Schemes We Handle

Every business has unique procurement needs. Our EPCG Consultants provide expert assistance across all variations of the scheme:

Direct Import

Import new or second-hand capital goods directly from international suppliers at zero duty. We manage your entire DGFT documentation process.”

Indigenous Purchase

A Make in India incentive. Source machinery from domestic manufacturers with a 25% reduction in your total export obligation requirements.

Import of Spares

Special provisions for importing spares, components, and accessories required for the maintenance and operation of your existing plant and machinery.

Who Can Apply for EPCG License?

To qualify for the scheme, an applicant must have a valid Import Export Code (IEC) and belong to one of these categories:

Manufacturer Exporters

Firms manufacturing goods for direct export.

Service Providers

Entities in sectors like Hospitality, Healthcare, IT, and Logistics (including Common Service Providers).

Merchant Exporters

Traders tied to a supporting manufacturer (the machinery must be installed at the manufacturer’s premises).

New & Existing Exporters

Both startups and established firms are eligible to upgrade their technology under the scheme.

Our Process for EPCG License Services

We don’t just file applications; we provide a managed EPCG service that protects your business from legal and financial risks. Here is how our EPCG consultants work for you:

Requirement Analysis & Problem Identification

Whether setting up a new unit or upgrading an old one, we identify the exact Nexus between the machinery you want to import and the products you plan to export.

Strategic Assessment & Feasibility

We analyse your past three years’ export performance to calculate your Average Export Obligation (AEO), ensuring the commitment you take on is realistic and sustainable, preventing future penalties.

Expert Solutioning

Our EPCG consultants design a roadmap covering duty savings, port registration, and documentation. Guiding you to the right route (Direct vs. Indigenous), optimising savings and minimising obligations.

Precise Implementation & Filing

From preparing the ANF-5A form and obtaining Chartered Engineer Certificates to online submission on the DGFT portal, we handle the entire technical filing process with zero errors.

License Issuance & Lifecycle Management

We don’t stop at License issuance. Our EPCG Consultants assist with port registration, tracking annual export reports, and obtaining the Redemption Letter (EODC) to officially close your case.

Why Choose DGFTGuru as Your EPCG Consultant?

Precision-Driven

We ensure every HSN code and technical description is 100% accurate to avoid Customs delays.”

PAN-India Presence

Providing localised support for Regional Authorities (RAs) across all major Indian cities.

Zero-Penalty Guarantee

Our proactive monitoring ensures you never miss a deadline for EO fulfilment or block extensions.

FAQ's

What happens if I fail to meet the Export Obligation (EO)?

If the EO is not met within the 6 years, the importer must pay the saved customs duty along with 15% annual interest to the Customs Authority. DGFT Guru helps you monitor targets to avoid this penalty.

How does DGFT Guru help in establishing the "Nexus" for the license?

Proving a direct “Nexus” between the imported capital goods and the final export product is a technical requirement. We analyse your manufacturing process to ensure that the machinery being imported is strictly essential for your production. This prevents the DGFT from rejecting your application due to technical mismatches.

What happens to the EPCG license if my company is an MSME?

MSMEs and units in certain sectors (like Green Technology) may be eligible for reduced Export Obligations or extended timelines. We identify these policy-specific incentives for your business to ensure you are not taking on a higher obligation than the law requires.

Can I import second-hand machinery under the EPCG scheme?

Yes, the import of second-hand capital goods is allowed under the EPCG scheme, provided they have a minimum residual life as per the Foreign Trade Policy.

Who is eligible for the EPCG Scheme?

Manufacturer exporters, merchant exporters with supporting manufacturers, and service providers (like Hotels, IT firms, and Hospitals) are eligible. New exporters can also apply, starting with a zero “Average Export Obligation.”

Can we amend or add products to an existing EPCG License?

Yes. If your production line changes or you start manufacturing new export products, we can assist in amending the license to include these items. This ensures that the exports of your new products are counted toward your Export Obligation (EO) fulfilment.

How do you assist with the "Redemption" (Closure) of the license?

Once the Export Obligation is met, the license must be formally “Redeemed” at the DGFT to release the Bank Guarantee/Lut at Customs. We compile the Export Obligation Discharge Certificate (EODC) application, verify all shipping bills and e-BRCs, and represent your case until the final Redemption Letter is issued.

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