{"id":25334,"date":"2026-01-09T14:02:11","date_gmt":"2026-01-09T08:32:11","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=25334"},"modified":"2026-02-09T12:52:06","modified_gmt":"2026-02-09T07:22:06","slug":"epcg-scheme-guide-indian-exporters","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/epcg-scheme-guide-indian-exporters\/","title":{"rendered":"EPCG Scheme 2026: A Comprehensive Guide for Indian Exporters"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you are an Indian exporter looking to upgrade your machinery without the burden of high customs duties, the Export Promotion Capital Goods (EPCG) scheme offers a strong option. Many businesses struggle with staying globally competitive while also managing large capital investment costs. The EPCG scheme helps by allowing duty-free imports of capital equipment against an export commitment, so you can modernise operations while preserving working capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guide explains how the EPCG scheme works, who can benefit, and how it can support your export growth.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key Takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <a href=\"https:\/\/razorpay.com\/blog\/export-promotion-schemes-guide\">EPCG<\/a> scheme enables duty-free import of capital goods against a six-times export obligation, helping businesses upgrade technology without heavy upfront costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exporters must track both Specific and Average Export Obligations and maintain timely documentation to avoid penalties and interest liabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strategic selection of capital goods and robust internal compliance systems are essential for maximising scheme benefits and ensuring smooth redemption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leveraging digital tools, including modern export payment solutions like the Razorpay <a href=\"https:\/\/razorpay.com\/blog\/money-saver-export-account\/\">MoneySaver Export Account<\/a>, improves operational efficiency and supports smoother fulfilment of EPCG commitments.<\/span><\/li>\n<\/ul>\n<\/div>\n<h2><b>What Is the Export Promotion Capital Goods (EPCG) Scheme?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Export Promotion Capital Goods scheme is a DGFT initiative that enables import of capital goods and specified technology at zero or concessional duty against an export obligation to be fulfilled over a prescribed period. This programme allows manufacturers and service providers to import machinery, spares, tools, and equipment without paying customs duties upfront.<\/span><\/p>\n<h3><b>How the scheme works<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Import capital goods duty-free or at reduced rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commit to achieving exports worth 6 times the duty saved<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fulfil this export obligation within 6 years from the authorisation date<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain average export performance alongside the specific obligation<\/span><\/li>\n<\/ol>\n<p>Related Read : <a href=\"https:\/\/razorpay.com\/blog\/export-promotion-schemes-guide\">Export Promotion Schemes in India<\/a><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0;\">Did You Know?<\/h2>\n<p><span style=\"font-weight: 400;\">The EPCG scheme permits import of second-hand capital goods without any age restriction, which can help businesses upgrade technology at a lower cost.<\/span><i><\/i><\/p>\n<\/div>\n<h2><b>Who Can Benefit from the EPCG Scheme?<\/b><\/h2>\n<p><strong>Eligible entities include:<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacturer exporters, with or without supporting manufacturers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Merchant exporters tied to supporting manufacturers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Service providers, including hotels, logistics companies, IT firms, and hospitals<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Eligibility mainly depends on holding a valid <a href=\"https:\/\/razorpay.com\/import-export-code\/\">Import Export Code<\/a> (IEC) and showing clear intent and capability for export production. Businesses with consistent export history and significant capital investment needs often benefit the most.<\/span><\/p>\n<h2><b>What Are the Benefits of Importing Capital Goods Under EPCG?<\/b><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Zero or concessional customs duty<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Save substantial upfront costs on importing machinery, tools, and equipment. For high-value imports, this can translate into large savings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technological upgradation<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Access advanced technology that improves product quality, increases efficiency, and reduces production costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enhanced global competitiveness<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Cost savings combined with modern equipment can help exporters compete better in international markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased export potential<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Higher capacity and improved capabilities can support export growth and diversification into new products or services.<\/span><\/li>\n<\/ol>\n<h2><b>How to Apply for an EPCG License?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The DGFT has digitised the EPCG licence application process, allowing businesses to apply through its online portal. Before applying, ensure all supporting documents are verified and formatted correctly for upload to avoid delays.<\/span><\/p>\n<h3><b>Key documents required for EPCG application<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Import Export Code (IEC)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/blog\/rcmc-certificate\/\">Registration cum Membership Certificate<\/a> (RCMC) from the relevant export promotion council<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\">Digital Signature Certificate<\/a> (DSC) for online application submission<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/learn\/company-permanent-account-number-pan-card\/\">PAN card<\/a> and <a href=\"https:\/\/razorpay.com\/learn\/gst-registration-eligibility-process-documents-and-penalties\/\">GST registration <\/a>certificate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proof of manufacturing, such as <a href=\"https:\/\/razorpay.com\/learn\/msme-india-registration\/\">MSME<\/a>, SSI, or IEM certificates as applicable<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proforma invoice with specifications, <a href=\"https:\/\/razorpay.com\/docs\/build\/browser\/assets\/images\/razorpayx_current_account_documents-CIF-NRI.pdf\">CIF value<\/a>, and <a href=\"https:\/\/razorpay.com\/learn\/hsn-sac-code-full-form-meaning-explained\/\">HS code<\/a> of capital goods<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professional certificates from CA, Cost Accountant, or Company Secretary, and Chartered Engineer, in the prescribed formats (Appendix 5B and 5A)<\/span><\/li>\n<\/ol>\n<h3><b>Step-by-step online application procedure<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Register on the DGFT portal and log in using your IEC details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open the ANF 5A form and fill in the required details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Upload supporting documents in the prescribed format<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digitally sign the application, pay the applicable fee online, and submit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track the application status on the portal and respond to any follow-ups<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once approved, the EPCG licence is typically issued quickly, depending on verification and processing<\/span><\/li>\n<\/ol>\n<p style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h3><b>Registering the EPCG license at the port of import<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Register the issued EPCG authorisation with the jurisdictional Customs Authority at the port of import<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Execute a bond or bank guarantee with Customs to ensure export obligation compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Import capital goods duty-free only after registration and bond execution<\/span><\/li>\n<\/ol>\n<h2><b>Understanding and Fulfilling Your Export Obligation<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When you import capital goods under EPCG, you commit to exporting goods or services worth six times the duty saved within six years. Since the duty saved is the customs duty you would have paid without EPCG, this figure becomes your export target.<\/span><\/p>\n<h3><b>Specific Export Obligation vs Average Export Obligation<\/b><\/h3>\n<p><strong>Specific Export Obligation (SEO)<br \/>\n<\/strong><span style=\"font-weight: 400;\">The primary requirement to export goods or services worth six times the duty saved, within the overall six-year period.<\/span><\/p>\n<p><strong>Average Export Obligation (AEO)<br \/>\n<\/strong><span style=\"font-weight: 400;\">Maintain the average export performance of similar products or services from the preceding three licensing years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AEO applies in addition to SEO, and the calculation differs for new versus existing firms.<\/span><\/p>\n<h3><b>SEO vs AEO summary<\/b><\/h3>\n<h4><strong>Specific Export Obligation<\/strong><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Basis: Six times duty saved<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purpose: Direct export target linked to EPCG imports<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Timeframe: Six years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Applicability: Mandatory for all EPCG holders<\/span><\/li>\n<\/ol>\n<h4><strong>Average Export Obligation<\/strong><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Basis: Average export performance of preceding three years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purpose: Ensures ongoing export consistency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Timeframe: Reviewed annually<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Applicability: Applies in addition to SEO, with exceptions for new units<\/span><\/li>\n<\/ol>\n<h3><b>Block-wise fulfilment and early redemption incentives<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least 50% of SEO must be met within the first four years, with the remaining in the last two years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you meet 75% or more of SEO and 100% of AEO in half or less than half the prescribed period, authorities may condone the remaining obligation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exports to SEZ units and deemed exports can contribute to export obligation fulfilment<\/span><\/li>\n<\/ol>\n<h3><b>Monitoring and annual reporting<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submit annual export obligation fulfilment reports to the DGFT Regional Authority online by June 30 each year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Include both specific and average export obligation fulfilment details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Late filing can attract penalties, including a commonly referenced amount of \u20b95,000 for non-compliance<\/span><\/li>\n<\/ol>\n<h2><b>Avoiding Penalties: Key Compliance Requirements Under EPCG<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Non-compliance can trigger customs duty payment with interest, penalties, or even IEC suspension.<\/span><\/p>\n<h3><b>Common reasons for non-compliance<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Failure to meet specific or average export obligation within the stipulated timeframe<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delay in filing export obligation documents or applying for redemption before expiry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delayed installation of imported machinery, with longer timelines now permitted in some cases<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Misdeclaration, inaccurate documentation, or unauthorised transfer or sale of EPCG machinery<\/span><\/li>\n<\/ol>\n<h3><b>Financial implications and other penalties<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repayment of the entire customs duty saved, along with interest per year from the import date<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Composition fees for extension requests or partial completion of export obligation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monetary penalties under the Foreign Trade (Development and Regulation) Act, 1992, which can be severe for major defaults<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IEC suspension or blacklisting for repeated defaults or fraudulent claims<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enforcement of bonds or bank guarantees furnished at the time of clearance<\/span><\/li>\n<\/ol>\n<h2><b>Recent Updates to DGFT Rules 2025<\/b><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">From 1 May 2025, service exporters must identify their Mode of Export of Services in the e-BRC, mapped to WTO GATS categories<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This increases documentation diligence for EPCG holders in services, as mismatches may delay redemption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Some procedural relaxations have been introduced, including longer timelines for requesting export obligation extensions<\/span><\/li>\n<\/ol>\n<h2><b>Maximising EPCG Benefits: Strategic Considerations<\/b><\/h2>\n<h3><b>Planning and execution<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Export capability assessment: Evaluate production capacity and market demand before applying<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Internal tracking systems: Set up monitoring for export performance and documentation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professional guidance: Use trade consultants or CAs for navigating compliance requirements<\/span><\/li>\n<\/ol>\n<h3><b>Strategic selection of capital goods<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct export impact: Choose machinery that improves export quality and efficiency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market relevance: Consider long-term market trends so the equipment remains useful throughout the obligation period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capacity planning: Base imports on realistic export growth expectations to avoid over or under-investment<\/span><\/li>\n<\/ol>\n<h3><b>Leveraging technology for compliance and payments<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use digital tools for DGFT applications, tracking, and reporting to reduce manual errors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use modern payment solutions that simplify international receipts and documentation, such as the MoneySaver Export Account, for easier FX handling and FIRC generation<\/span><\/li>\n<\/ol>\n<h2><b>Streamlining Export Payments with Razorpay MoneySaver Export Account<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As exporters scale production under EPCG, managing international payments becomes as important as meeting export obligations. A reliable payment setup helps maintain cash flows, supports compliance, and reduces administrative effort.<\/span><\/p>\n<h3><b>Key features of the MoneySaver Export Account<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy international bank transfers: Receive payments via SWIFT, ACH, SEPA, FPS, and other networks through virtual account details that are simple for clients to use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Live FX rates with no additional markups: Conversion at real-time exchange rates without extra forex markup<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automated <a href=\"https:\/\/razorpay.com\/blog\/firc-certificate\/\">FIRC<\/a> and <a href=\"https:\/\/razorpay.com\/blog\/e-fira\/\">FIRA<\/a> generation: Digital inward remittance certificates issued automatically to support documentation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multi-currency acceptance with INR settlement: Accept major currencies while receiving INR settlements for easier reconciliation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower costs and better bank transfer success rates: Often lower fees compared to traditional bank and card-heavy flows<\/span><\/li>\n<\/ol>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 30px; text-align: center; margin: 42px 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin-bottom: 12px;\"><strong>Start simplifying your global collections today<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 18px; line-height: 1.6;\"><strong>Accept multi-currency payments through easy bank transfers, reduce fees vs<br \/>\nbanks, and keep reconciliation simple with INR settlements.<br \/>\n<\/strong><\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/?utm_source=blog&amp;amp;utm_medium=referral&amp;amp;utm_campaign=internationalpayments%22%3E%3Cem%3E%3Cstrong%3ERazorpay%E2%80%99s\">Explore Razorpay\u2019s MoneySaver Export Account<\/a><\/p>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The EPCG scheme remains a valuable route for Indian exporters to upgrade technology and expand capacity without the burden of high import duties. Duty-free access to machinery supports better quality, improved efficiency, and stronger competitiveness across sectors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meeting export obligations on time, keeping documentation accurate, and staying aligned with evolving compliance rules helps avoid penalties and keeps operations smooth. With careful planning and the right digital tools to track progress, exporters can use EPCG to build long-term export growth.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<h3><b>1. What is the primary objective of the EPCG scheme?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The primary objective of the EPCG scheme is to promote exports from India by allowing manufacturers and service providers to import capital goods at zero or concessional customs duty.<\/span><\/p>\n<h3><b>2. What is the export obligation under the EPCG scheme?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Under the EPCG scheme, the authorisation holder must fulfil an export obligation equivalent to six times the duty saved on imported capital goods within six years from the date of issuance of EPCG authorisation.<\/span><\/p>\n<h3><b>3. What happens if an exporter fails to meet the EPCG export obligation?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If an exporter fails to meet the stipulated export obligation under the EPCG scheme, they are liable to pay customs duties saved on imported capital goods along with interest per annum, payable to the customs authority.<\/span><\/p>\n<h3><b>4. What types of capital goods are allowed under the EPCG scheme?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The EPCG scheme permits import of capital goods including machinery, spares, fixtures, jigs, and tools. Second-hand capital goods are also allowed without any age restriction under the scheme.<\/span><\/p>\n<h3><b>5. How does the DGFT e-BRC rule impact service exporters under EPCG?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">From 1 May 2025, service exporters must mention the correct Mode of Export of Services in every e-BRC. This increases documentation care, and mismatches can delay EPCG compliance or redemption.<\/span><br \/>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the primary objective of the EPCG scheme?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The primary objective of the EPCG scheme is to promote Indian exports by permitting manufacturers and service providers to import capital goods at zero or concessional customs duty, thereby reducing production costs and enhancing competitiveness.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the export obligation under the EPCG scheme?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Under the EPCG scheme, the authorisation holder must fulfil an export obligation equal to six times the duty saved on the imported capital goods. This obligation must be completed within six years from the date of issuance of the EPCG authorisation.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What happens if an exporter fails to meet the EPCG export obligation?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"If an exporter does not meet the export obligation under the EPCG scheme, they are required to repay the customs duty saved on the imported capital goods along with applicable interest to the customs authority.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What types of capital goods are allowed under the EPCG scheme?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The EPCG scheme allows the import of various capital goods including machinery, spares, jigs, fixtures and tools. Second-hand capital goods are also permitted without any age restriction.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How does the DGFT e-BRC rule impact service exporters under EPCG?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"From 1 May 2025, service exporters must correctly indicate the Mode of Export of Services on every e-BRC. Incorrect or mismatched entries can delay EPCG compliance, redemption or closure of obligations, making accurate documentation essential.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are an Indian exporter looking to upgrade your machinery without the burden of high customs duties, the Export Promotion Capital Goods (EPCG) scheme offers a strong option. Many businesses struggle with staying globally competitive while also managing large capital investment costs. The EPCG scheme helps by allowing duty-free imports of capital equipment against<\/p>\n","protected":false},"author":86,"featured_media":25885,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1067],"tags":[],"class_list":{"0":"post-25334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cross-border"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=25334"}],"version-history":[{"count":3,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25334\/revisions"}],"predecessor-version":[{"id":25337,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25334\/revisions\/25337"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/25885"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=25334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=25334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=25334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}