Frequently Asked Questions on Export Promotion Capital Goods
EPCG and Post Export EPCG FAQs
Q1. What does EPCG stand for? What is the benefit of an EPCG authorization?
EPCG stands for Export Promotion Capital Goods. The objective of this scheme is to facilitate the import of capital goods with the purpose of producing quality goods and services to enhance India’s export competitiveness. EPCG scheme allows import of capital goods for pre-production, production and post-production at zero customs duty.
Q2. Who can benefit from the EPCG Scheme?
Manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service provider(s); and service providers. Refer FTP and HBP for latest details.
Q3. What are the prerequisites for applying for EPCG?
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What are the pre-requisites to avail benefits under EPCG scheme?
To avail benefits under an EPCG scheme, following are required:
- Your user profile must be linked with an IEC.
- A valid DSC / e-sign must be registered in the system. You may verify the same from My Dashboard > View and Register Digital Signature Token.
- GSTN details corresponding to the branches of the IEC. The same may be added from Services > IEC Profile Management > Modify IEC.
- Valid RCMC details issued to the IEC.
Q4. If my IEC is in DEL/cancelled/suspended, am I eligible to apply for the EPCG authorization?
If your IEC is in DEL, you shall be allowed to proceed with submission of your request for issuance of an EPCG authorization, however, your application shall only be actioned upon once your IEC is removed from DEL.
If your IEC is cancelled/suspended, you shall not be allowed to proceed with submission of your request for the issuance of an EPCG authorization.
Q5. What is the export obligation under EPCG scheme? How is my export obligation calculated under the EPCG scheme?
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What are the conditions to be fulfilled under the EPCG scheme?
Refer FTP and HBP for latest details. Export obligation under the EPCG scheme is required to be fulfilled by export of goods/services rendered by you. There are two types of export obligation which the authorization holder is obligated to complete:
- Annual average export obligation: The export obligation is over and above, the average level of export achieved by you as an authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period (if any). Such average would be the arithmetic mean of export performance in the previous three years for the same and similar products.
- Specific export obligation: Specific export obligation is calculated as six times the duty saved amount. You must fulfill a minimum of 50% of export obligation in each block of years, i.e., the first block being the first 4 years and the second block is of the remaining 2 years.
Q6. What is first block period?
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What is second block period?
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How is my export obligation period divided into blocks?
My export obligation period is defined for six years from the date of issuance of the authorization. This six-year period is divided into two blocks, namely, the first block and the second block.
The first block period is for the first four years from the date of issuance of the authorization. Whereas, the following two years are known to be the second block period of your authorization.
Q7. Is there any exemption from maintenance of Annual average export obligation?
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Am I eligible for an exemption from maintenance of Annual average export obligation?
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How can I avail the benefit for exemption from the maintenance of Annual average export obligation?
In case of export of goods relating to specific sectors as specified in the HBP 2014-19 para 5.13(a), exemption from maintenance of annual average export obligation may be provided to you.
To avail this benefit, please mention your sector of export under the field, Are the export item(s) present in the following list in your application for the issuance of an EPCG/Post export EPCG authorization.
Q8. Am I eligible for a reduction in my specific export obligation?
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How can I avail the benefit for reduction in my specific export obligation?
The specific export obligation may be reduced for the EPCG authorization holder, in the following cases:
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Only one of the above benefits may be provided to you. The intension for the same may be shown while applying for the issuance of the authorization, if applicable. Also, while applying for issuance of the authorization, the same may be indicated in the field of Sector Classification of Capital Goods sought to be imported field.
Q9. What items are allowed for import under the EPCG scheme?
Capital Goods for the purpose of the EPCG scheme shall include:
- Capital goods as defined in Chapter 9
- Computer systems and software which are a part of the capital goods
- Spares, moulds, dies, jigs, fixtures, tools & refractories
- Catalysts for initial charge plus one subsequent charge
Q10. I couldn’t complete my application, however, I had saved it after filing it partially. Where can I find it?
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Where can I find my partially filled application?
Please follow the below path to access your draft applications for EPCG
- My Dashboard > Draft Applications.
- Click on Action (Under the Results) > Open
Q11. What is an application number? Where can I find it?
When an application is created and saved for the first time, an application number gets created. All draft applications have an application number. The same can be found by following the below path:
My Dashboard > Draft applications
Q12. What is a file number? Where can I view my submitted applications/File number?
When an application is submitted, a file number is generated. The application is tracked via this file number.
Please follow the below path to get the file number for EPCG
- My Dashboard > Submitted Applications
- Enter Type of Scheme (Select in dropdown: Export Promotion Capital Goods (EPCG)) and Type of Sub Scheme (Issuance of EPCG Authorization/Post-Export EPCG Authorization)
- Click on Search.
- All details of submitted applications are available in the search results. These details also include their file number.
Q13. How can I request for withdrawal of my submitted application?
Please follow the below path to withdraw a submitted application
- My Dashboard > Submitted Applications
- Enter Type of Scheme (Select in dropdown: Export Promotion Capital Goods (EPCG)) and Type of Sub Scheme (Issuance of EPCG Authorization/Post-Export EPCG Authorization)
- Click on Search
- Click on Action (Under the Results) > Withdraw
Q14. Where can I view my approved authorizations?
Please follow the below path to get the approved authorizations for EPCG
- My Dashboard > Submitted Applications
- Enter Type of Scheme (Select in dropdown: Export Promotion Capital Goods (EPCG)) and Type of Sub Scheme (Issuance of EPCG Authorization/Post-Export EPCG Authorization)
- Click on Search
- Click on Action (Under the Results) > View Approved Licenses > View Letter
Q15. What is view lifecycle? Where can I see it?
Please follow the below path to view lifecycle of a submitted file for EPCG
- My Dashboard > Submitted Applications.
- Enter Type of Scheme (Select in dropdown: Export Promotion Capital Goods (EPCG)) and Type of Sub Scheme (Issuance of EPCG Authorization/Post-Export EPCG Authorization)
- Click on Search
- Click on Action (Under the Results) > View Life Cycle
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