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EPCG License

EPCG (Export Promotion Capital Goods) is a facility provided to exporters and importers by government on exemption of import duty amount. EPCG License is like the Importer Exporter Code, EPCG scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue date.

To obtain an EPCG License, it is necessary to file an application toward that purpose with the licensing authority - DGFT along with supporting documents - company and personal details, history. Based on the amount of import duty exemption, the value addition is fixed up and export obligation has to be fulfilled accordingly. If the export obligation was genuinely unable to be completed in the time specified by licensing authority, it may be permitted to get the export obligation period extended for further period of time. However, if the export obligation has been finished, all manufactured goods henceforth can be sold locally as well in the domestic tariff area (DTA). Hence business must first seek to fulfill their obligations in foreign markets before they seek to exploit favourable conditions at home. Greenleaf can help you to obtain EPCG License quickly and easily.

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