What is the purpose of Export Promotion Capital Goods Scheme?

Export Promotion Capital Goods Scheme is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.

Who can apply for Export Promotion Capital Goods Scheme?

Eligibility for Export Promotion Capital Goods Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.

What benefits are offered under Export Promotion Capital Goods Scheme?

Benefits under Export Promotion Capital Goods Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.

Which department manages Export Promotion Capital Goods Scheme?

Export Promotion Capital Goods Scheme is managed by Directorate General of Foreign Trade and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.

Can users apply online for Export Promotion Capital Goods Scheme?

Yes, eligible applicants may be able to apply online for Export Promotion Capital Goods Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.

Is Aadhaar mandatory for Export Promotion Capital Goods Scheme?

Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.

Where can users apply for Export Promotion Capital Goods Scheme?

Applications for Export Promotion Capital Goods Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.

What documents may be required for Export Promotion Capital Goods Scheme?

Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.

Is Export Promotion Capital Goods Scheme a central government scheme?

Yes, Export Promotion Capital Goods Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.

Does Export Promotion Capital Goods Scheme provide business loan or startup assistance?

Export Promotion Capital Goods Scheme may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.

Is collateral required under Export Promotion Capital Goods Scheme?

Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.

Can CSC centres help users apply for Export Promotion Capital Goods Scheme?

Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.

How can users check the latest updates for Export Promotion Capital Goods Scheme?

Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.

Are there deadlines for applying to Export Promotion Capital Goods Scheme?

Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.

Can beneficiaries track application status for Export Promotion Capital Goods Scheme?

Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.

Where can users get help for Export Promotion Capital Goods Scheme in All India?

Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.

Which nearby public services may help with Export Promotion Capital Goods Scheme applications?

Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.

Export Promotion Capital Goods Scheme – eligibility, benefits & apply

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2022-02-01

Categories: Business & Entrepreneurship

Sub-categories: Imports and exports

Target beneficiaries: Business Entity

Tags: Manufacturer Exporters, Import, Quality Goods, Services

Details

The Directorate General of Foreign Trade under the Ministry of Commerce and Industry administers the EPCG Scheme, which allows the import of capital goods (except those specified in the negative list in Appendix 5F) for pre-production, production, and post-production activities at zero customs duty. Capital goods imported under an EPCG Authorisation for physical exports are also exempt from IGST and Compensation Cess leviable under sub-sections (7) and (9) of Section 3 of the Customs Tariff Act, 1975, as notified by the Department of Revenue. Alternatively, the authorisation holder may procure capital goods from indigenous sources in accordance with the provisions of paragraph 5.07 of the Foreign Trade Policy (FTP).
Capital goods for the purpose of the EPCG scheme shall include:

Capital Goods as defined in Chapter 11 including in CKD/SKD condition thereof;
Computer systems and software which are a part of the Capital Goods being imported;
Spares, moulds, dies, jigs, fixtures, tools & refractories; and
Catalysts for initial charge plus one subsequent charge.

Import under EPCG Scheme shall be subject to an Export Obligation (EO) equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation.
Import/procurement under EPCG scheme shall also be subjected to Average Export Obligation (AEO) as given in para 5.04(c) of FTP.
Authorisation shall be valid for import for 24 months from the date of issue of Authorisation. Revalidation of EPCG Authorisation shall not be permitted.
In case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the said Integrated Tax and Compensation Cess would not be taken for computation of net duty saved provided Input Tax Credit is not availed.
Import of items which are restricted for import shall be permitted under EPCG Scheme only after approval from Exim Facilitation Committee (EFC) at DGFT Headquarters.
If the goods proposed to be exported under EPCG Authorisation are restricted for export, the EPCG Authorisation shall be issued only after approval for issuance of Export Authorisation from Exim Facilitation Committee (EFC) at DGFT Headquarters.
EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers. Name of supporting manufacturer(s) shall be endorsed on the EPCG Authorisation before installation of the capital goods in the factory / premises of the supporting manufacturer(s). In case of any change in supporting manufacturer(s), the RA shall intimate such change to jurisdictional Customs Authority of existing as well as changed supporting manufacturer(s) and the Customs at port of registration of Authorisation

Benefits

EPCG Scheme allows import of capital goods for pre-production production and post-production at Zero customs duty & IGST. The specific export obligation may be reduced for the EPCG authorisation holder in the following cases: 1. In cases where they have completed 75% or more of specific export obligation and 100% of average export obligation till date (if any) in half or less than half of the original export obligation period specified. Then exemption will provided remaining export obligation shall be condoned and the authorisation be redeemed by the RA concerned. 1. For exporters of Green Technology Products.Exmption will be provide Specific EO shall be 75% of the EO. 1. For units located in Arunachal Pradesh Assam Manipur
Meghalaya Mizoram Nagaland Sikkim
Tripura and Jammu and Kashmir.Exemption will be given Specific EO shall be 25% of the EO

EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty & IGST.
The specific export obligation may be reduced for the EPCG authorisation holder, in the following cases:

In cases, where they have completed 75% or more of specific export obligation and 100% of average export obligation till date (if any), in half or less than half of the original export obligation period specified. Then exemption will provided, remaining export obligation shall be condoned and the authorisation be redeemed by the RA concerned.
For exporters of Green Technology Products.Exmption will be provide Specific EO shall be 75% of the EO.
For units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Jammu and Kashmir.Exemption will be given Specific EO shall be 25% of the EO.

Eligibility

Pre-conditions for applying for EPCG:

IEC Entity has already Imported Items by paying customs duty.
The applicant has an ‘Active’ IEC and is logged into the DGFT Customer Portal.
E-Sign and DSC are enabled for submission.
The applicant is authorised to draft and submit applications for an IEC.
GSTN details corresponding to the branches of the IEC. The same may be added from Services > IEC Profile Management > Modify IEC.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

5.4

/ 10

Public Benefit Score

Accessibility 5.0/10 Moderate

Rural usefulness 4.0/10 Moderate

Application complexity 5.0/10 Moderate

Financial impact 5.0/10 Moderate

Literacy barrier 7.0/10 Challenging

Women inclusivity 5.0/10 Moderate

Awareness 7.5/10 Good

Implementation reliability 7.0/10 Good

Bigger shape means a better fit for citizens

Accessibility5.0
Financial impact5.0
Rural utility4.0
Awareness7.5
Simplicity5.0
Inclusivity5.0

What problem does this scheme solve?

The EPCG Scheme facilitates the import of capital goods at zero customs duty, benefiting manufacturers and exporters.

Key challenges addressed

Facilitates access to capital goods for production
Enhances manufacturing competitiveness

Most beneficial for

Manufacturer exporters
Service providers

Likely challenges

Complex eligibility criteria
High digital dependency

Practical insights for citizens

The scheme may be underutilized in rural areas due to digital and informational barriers.

Rural challenges

Limited internet access
Lack of awareness

Digital challenges

High digital dependency for application

Implementation bottlenecks

Approval delays
Complex export obligation requirements

Awareness challenges

Low awareness among rural manufacturers

Application analysis

Application mode: Online portal
Documents burden: Minimal, no specific documents listed
Verification complexity: Moderate
Office dependency: Low
DBT dependency: No
CSC support: Limited
Estimated citizen effort: Moderate

Estimated beneficiary reach

Rural / urban reach Moderate
Gender reach Moderate
Occupation reach Manufacturers, Exporters

Benefit analysis

Benefit type: Composite
Benefit frequency: One-time upon approval
Benefit practicality: High for eligible manufacturers
Financial meaningfulness: Not quantifiable due to lack of specified benefit amount
Long-term impact: Potentially significant for enhancing manufacturing capabilities

Plain-language guidance

The EPCG Scheme helps manufacturers import capital goods without paying customs duty. It is designed for exporters looking to enhance their production capabilities.

Who should apply: Manufacturers and exporters with an active IEC.
Who may struggle: First-time applicants and those with limited digital access.
Best application route: Apply directly through the DGFT online portal.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

Step 1 : Application Link:

www.dgft.gov.in
Importer Exporter navigates through Services>>EPCG

Step 2 : Apply for EPCG file number are as follows:

Login to the portal with valid credentials and click on ‘Services’menu present in the top of the screen
Importer Exporter navigates through Services>>EPCG

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What does EPCG stand for and what is the benefit of an EPCG authorisation?: EPCG stands for Export Promotion Capital Goods. The objective of this scheme is to facilitate the import of capital goods to produce 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.
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 to FTP and HBP for the latest details.
If my IEC is in DEL/cancelled/suspended, am I eligible to apply for the EPCG authorisation?: If your IEC is in DEL, you shall be allowed to proceed with the submission of your request for issuance of an EPCG authorisation; 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 the submission of your request for the issuance of an EPCG authorisation.
How is my export obligation period divided into blocks?: Your export obligation period is defined for six years from the date of issuance of the authorisation. These six years are 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 authorisation. Whereas, the following two years are known to be the second block period of your authorisation.
Is there a time period for amendment of an issued authorisation?: An authorisation may only be allowed for amendment until its import validity period. No authorisations shall be permitted for amendment post the validity period of the authorisation.
What is the significance of initial and revised value of my authorisation validity dates?: The initial and the revised values of the authorisation validity dates show the import and export validity dates as per the issued authorisations and amended validity dates (if any). If no extensions have been granted against the selected authorisation, the initial and the revised values shall be the same.
What is the application fee for amendment?: One per thousand for differential duty saved amount to be enhanced in addition to a flat fee of INR 200/- for amendment to the issued authorisation. No additional fee is required if the maximum prescribed fee has been paid initially.
Why can’t I decrease my import quantity of an item?: You can only decrease the quantities of imported items if the bill of entries of these items already exists in the Shipping Bill Repository, i.e., post importing the item, you shall not be allowed to decrease the quantity of the item.
What are the benefits of domestic sourcing?: You may be allowed a benefit of 25% in your specific Export Obligation for domestic sourcing.
What is an installation certificate?: An installation certificate is proof of the installation of capital goods at the said factory/premises of the authorisation holder or the supporting manufacturer of the authorisation holder. This certificate may be obtained from the jurisdictional customs authority or an independent chartered engineer.

Official links

References

Website: https://www.dgft.gov.in/CP/?opt=epcg
EPCG FAQs: https://content.dgft.gov.in/Website/DGFT_FAQs-Export_Promotion_Capital_Goods(EPCG)v1.0.pdf

Frequently asked questions

What is the purpose of Export Promotion Capital Goods Scheme?: Export Promotion Capital Goods Scheme is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Export Promotion Capital Goods Scheme?: Eligibility for Export Promotion Capital Goods Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Export Promotion Capital Goods Scheme?: Benefits under Export Promotion Capital Goods Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Export Promotion Capital Goods Scheme?: Export Promotion Capital Goods Scheme is managed by Directorate General of Foreign Trade and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Export Promotion Capital Goods Scheme?: Yes, eligible applicants may be able to apply online for Export Promotion Capital Goods Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Export Promotion Capital Goods Scheme?: Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Export Promotion Capital Goods Scheme?: Applications for Export Promotion Capital Goods Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Export Promotion Capital Goods Scheme?: Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Export Promotion Capital Goods Scheme a central government scheme?: Yes, Export Promotion Capital Goods Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Does Export Promotion Capital Goods Scheme provide business loan or startup assistance?: Export Promotion Capital Goods Scheme may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Export Promotion Capital Goods Scheme?: Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Export Promotion Capital Goods Scheme?: Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Export Promotion Capital Goods Scheme?: Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Export Promotion Capital Goods Scheme?: Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Export Promotion Capital Goods Scheme?: Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Export Promotion Capital Goods Scheme in All India?: Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Export Promotion Capital Goods Scheme applications?: Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.