GST & Indirect Tax
EPCG Scheme — Zero Duty Capital Goods
EPCG (Export Promotion Capital Goods) under the Foreign Trade Policy 2023 — zero customs duty on capital goods, the export obligation, annual compliance reporting, and EODC.
The EPCG scheme in FTP 2023 Chapter 5 lets an exporter import capital goods at zero duty against an export obligation — 6 times the duty saved over 6 years. We file, track, and discharge the obligation.
- • EPCG eligibility and duty-saving computation
- • Export obligation computation — 6× the duty saved over 6 years
- • ANF-5B application drafting and filing on the DGFT portal
- • Annual compliance reporting through the obligation period
- • Obligation tracking matched to export performance
- • EODC filing and scheme closure
- • IEC and company registration records
- • Capital goods import plan with HSN codes and duty computations
- • Proposed export product details and past export performance
- • CA certificate for the duty saving and obligation, if required
See the fee table below for the statutory filing charge and common delay logic.
- • Section 5 of the Foreign Trade (Development and Regulation) Act 1992
- • Foreign Trade Policy 2023
- • Chapter 5 of the Foreign Trade Policy 2023
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Test eligibility
We confirm the company, the capital goods, and the proposed exports qualify under EPCG in FTP 2023 Chapter 5.
Compute the benefit and obligation
We compute the duty saved and the export obligation it triggers under the scheme's formula.
File ANF-5B
We prepare and file the EPCG application on the DGFT portal and follow it to issue.
Run the annual reporting
We file the annual compliance reports and track the obligation against export performance.
Discharge the obligation
We file the EODC once the obligation is met and close the scheme with the DGFT.
AEO summary
The EPCG scheme in FTP 2023 Chapter 5 lets an exporter import capital goods at zero duty against an export obligation — 6 times the duty saved over 6 years on the zero-duty route. We file, track, and discharge the obligation.
A duty saving that must be earned
The EPCG benefit is a loan of sorts: the duty is waived at import, and the exporter repays it in exports — 6 times the saving over 6 years on the zero-duty route. The obligation is computed when the authorisation issues, tracked through annual compliance reports, and closed with the EODC.
For a manufacturer-exporter, the scheme is often the difference between adding capacity and not — but the obligation arithmetic has to be done before the application, not discovered at the DGFT's year-four review.
- • Zero duty on capital goods under FTP 2023 Chapter 5
- • 6× export obligation over 6 years on the zero-duty route
- • Annual reporting and EODC close the scheme
The tracking that protects the benefit
EPCG obligations fail in the years between the application and the discharge: exports drift, the obligation slips, and the annual compliance report goes unfiled. The recovery then follows — duty, interest, and the loss of the scheme's goodwill.
We run the tracker from issue to EODC: the obligation computed, the exports matched annually, and the reports filed so the benefit is earned on schedule.
- • Obligation computed at issue and tracked annually
- • Compliance reports filed without reminders
- • EODC filed the moment the exports qualify
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| DGFT application fee | As per DGFT schedule | Application and related fees follow the DGFT's prescribed schedule. |
Timeline
Typical turnaround
Typical timeline usually means a annual cycle turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
DGFT application fees follow the prescribed schedule; the professional fee covers the application, the annual compliance reporting, and the EODC.
Related services
Keep the company moving
The combined EPCG and Advance Authorisation advisory for exporters
Duty-free inputs under SION norms — the input-side scheme alongside EPCG
The IEC every EPCG application needs on the DGFT portal
IEC and RCMC registration and modification support
FAQ
Frequently asked questions
What is the export obligation under the EPCG scheme?
What happens if the export obligation is not met?
What is the EODC?
What should you send us before we start?
Canonical reference: https://www.pvtltd.co/services/epcg-scheme
Get started
Ready to move this filing forward?
We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.