Import Facilitation Schemes
EPCG Scheme
Advisory Services
Reduce Capital Investment Cost with EPCG Scheme
For exporters investing in capital goods, import duties can significantly increase project cost and impact return on investment. The Export Promotion Capital Goods (EPCG) scheme enables businesses to import capital goods at concessional or zero customs duty, subject to export obligations.
Shangrila Corporate Services Pvt Ltd supports businesses in structuring EPCG authorisations, managing compliance, and ensuring smooth execution of export obligations.
Overview
What is EPCG Scheme?
The Export Promotion Capital Goods (EPCG) scheme is a Government of India initiative that allows import of capital goods required for production at zero or concessional customs duty. In return, the exporter is required to fulfil an export obligation (EO) over a specified period.
Capital goods covered include:
- Machinery and equipment
- Production tools and spares
- Technology upgrades for manufacturing
The scheme is widely used by exporters to expand capacity, modernise operations, and improve competitiveness.
Suitable For
Who Should Consider EPCG Advisory?
EPCG is highly relevant for businesses planning capital investment linked to exports.
Typically Suitable For:
Export-oriented units investing in machinery
Businesses upgrading technology or production lines
Companies with existing or planned export commitments
Key Benefits
Key Benefits of EPCG Scheme
01
Import capital goods at zero or reduced customs duty
02
Significant reduction in upfront capital investment cost
03
Enable technology upgradation and productivity improvement
04
Improve global competitiveness through cost efficiency
05
Structured framework for export-linked growth
Process
How EPCG Scheme Works
01
Application for EPCG authorisation with DGFT
02
Approval and issuance of EPCG licence
03
Import of capital goods at concessional duty
04
Fulfilment of export obligation over prescribed period
05
Submission of compliance and closure of licence
Common Pitfalls
Common Challenges Exporters Face
EPCG is a high-value scheme but involves complex compliance requirements:
Incorrect calculation of export obligation
Delays in licence application or approvals
Misalignment between imports and export commitments
Documentation and compliance gaps
Risk of penalties for non-fulfilment of obligations
These challenges can result in financial exposure and compliance risks.
How We Help
Our Approach to EPCG Advisory
Our approach focuses on end-to-end structuring and risk-managed execution of EPCG benefits.
Our Services Include:
Eligibility & Feasibility Assessment
Evaluation of investment plan and export capability.
EPCG Authorisation Support
Preparation and filing of EPCG licence applications.
Export Obligation Structuring
Accurate calculation and planning of export commitments.
Compliance & Documentation Support
Ensuring proper record-keeping and regulatory compliance.
Monitoring & Closure
Tracking export obligation fulfilment and assisting in licence closure.
Documentation
Documents Required to Get Started
Import Export Code (IEC)
Project report / capital investment details
Proforma invoices for capital goods
Export performance details
Financial statements
Maximise Your Investment Efficiency with EPCG
EPCG can significantly reduce capital costs, but requires careful structuring to avoid compliance risks. Connect with our team to:
- Evaluate feasibility
- Structure EPCG authorisation
- Manage export obligation effectively
FAQ
Frequently Asked Questions
Import of capital goods at zero or concessional customs duty.
A commitment to export goods worth a multiple of duty saved.
Manufacturers and exporters with export potential.
Penalty or duty recovery may apply.
Only if there is a clear export plan aligned with investment.
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Why SCS
Why Work with
Shangrila Corporate Services Pvt Ltd
Experience in handling EPCG authorisations and compliance
Strong understanding of DGFT procedures and requirements
Structured approach to risk management and execution
Focus on maximising benefits while ensuring compliance
We help businesses convert capital investment into export-driven growth through structured EPCG advisory.
Get in Touch
If you are planning capital investment for export growth, EPCG can significantly improve project viability.