Export Promotion Capital Goods Scheme (EPCG)
Ministry of Commerce and Industry · Central government
The EPCG Scheme lets Indian exporters import capital goods duty-free, tied to an export obligation.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Export Promotion Capital Goods (EPCG) Scheme, managed by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, allows the import of capital goods for manufacturing and service delivery at zero customs duty. This exemption also covers Integrated Goods and Services Tax (IGST) and Compensation Cess for physical exports, lowering the initial expense of technology and infrastructure for export-oriented units. The scheme supports both direct imports and the purchase of capital goods from domestic sources, thereby encouraging local manufacturing and supply chains.
Capital goods under the EPCG scheme include machinery, computer systems and software integral to these machines, and essential spares, moulds, dies, jigs, fixtures, tools, refractories, and catalysts. This broad coverage gives exporters access to the equipment needed to improve production efficiency and competitiveness. The scheme’s objective is to make Indian goods and services more competitive by allowing exporters to upgrade production facilities with advanced machinery and technology.
Beneficiaries must meet an Export Obligation (EO), typically six times the duties, taxes, and cess saved on imported capital goods, within a period of six years. This requirement ensures that duty benefits translate into increased exports. The EPCG scheme is available to manufacturer exporters, merchant exporters linked to supporting manufacturers, and service providers.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Applicant must hold an 'Active' IEC (Importer Exporter Code). - Applicant must be logged into the DGFT Customer Portal with E-Sign and DSC enabled. - Applicant must be authorised to draft and submit applications for an IEC. - GSTN details corresponding to the branches of the IEC must be updated.
How to apply
- **Step 1: Access the DGFT Portal** Go to the official DGFT website (www.dgft.gov.in), then use the 'Services' menu to select 'EPCG'. - **Step 2: Sign In and Submit Application** Log in to the DGFT Customer Portal with your credentials. Confirm that your IEC is marked 'Active' and that e-Sign and DSC features are operational. Then, submit an application to obtain an EPCG file number by completing the online form. The form requires your IEC, GSTN, and particulars of the capital goods you plan to import or procure.
How applications are assessed
The Directorate General of Foreign Trade (DGFT) examines each application to confirm alignment with the Foreign Trade Policy (FTP) and the scheme's particular requirements. This review involves validating the applicant's Import Export Code (IEC) status, GSTN particulars, and the category of capital goods slated for import. Once all eligibility conditions are met and the specified export obligations are complied with, the application receives approval. For consignments that fall under restricted import or export categories, the Exim Facilitation Committee (EFC) at DGFT Headquarters must grant its consent before the application proceeds.
Frequently asked questions
What is the primary benefit of the EPCG Scheme?
Under the EPCG Scheme, capital goods such as machinery, software, spares, and tools can be imported without paying customs duty, IGST, or Compensation Cess, provided they are used for pre-production, production, or post-production activities linked to exports.
Who is eligible to apply for the EPCG Scheme?
The scheme is open to manufacturer exporters (with or without supporting manufacturers), merchant exporters tied to supporting manufacturers, and service providers. Applicants must hold a valid IEC and meet DGFT portal requirements.
What is the Export Obligation under the EPCG Scheme?
Under the EPCG Scheme, the Export Obligation (EO) is set at six times the duties, taxes, and cess saved on imported capital goods, and must generally be fulfilled within six years from the date of Authorisation issuance.
Are there any conditions for importing restricted items under EPCG?
Import of restricted items under the EPCG Scheme is allowed only after approval from the Exim Facilitation Committee (EFC) at DGFT Headquarters.
How can the export obligation be reduced?
The export obligation may be lowered in specific situations, including to 75% of the original for exporters of Green Technology Products, or to 25% for units in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Jammu and Kashmir.
Is the EPCG scheme open to new businesses or only established exporters?
The scheme targets businesses involved in exports, such as manufacturer exporters, merchant exporters, and service providers. Although no age limit is specified, an 'Active' IEC and GSTN details indicate a registered, operational entity rather than a pre-incorporation or idea-stage startup.
Sectors
- Export Promotion
- Capital Goods
- Duty Exemption
- Foreign Trade
- Manufacturing Support
Details last verified on 3 August 2026. Source: the issuer's published information.