Modernize your factory. Import machinery, spares, moulds, and dies without paying Customs Duty. Fulfill obligation over 6 years
See how much you save on machine import.
The Export Promotion Capital Goods (EPCG) Schemefacilitates the import of capital goods at Zero Customs Duty.
Exporters must fulfill an Export Obligation (EO) equal to 6× the duty saved within 6 years.
Manufacturer & Merchant Exporters both eligible.
Covers capital goods, spares, moulds, dies, fixtures & tools.
Hotels, hospitals & logistics earning foreign exchange also eligible.
Comprehensive coverage across the production lifecycle.
Goods required before the actual manufacturing starts.
Core machinery required for manufacturing the export product.
Equipment required for finishing, packing, and testing.
To enjoy Zero Duty benefits, you must fulfill an Export Obligation (EO). Failure to do so results in repayment of saved duty plus high interest.
Must be fulfilled in Foreign Currency (Free Foreign Exchange).
If you procure capital goods from domestic manufacturers instead of importing, the EO reduces by 25%.
*Supports the “Make in India” initiative.
File ANF 5A on DGFT portal. Submit Nexus Certificate if required.
Register license at Customs Port. Execute Bond/BG.
Clear goods at 0% Duty. Install machinery at factory within 6 months.
Start production and export goods. Mention EPCG License on Shipping Bills.
Submit Installation Certificate and Export Proofs to get EODC.
End-to-End Support
An EPCG license is a 6-year marriage with the DGFT. CloudDesk ensures you don't end up in a messy divorce.
The export obligation is directly proportional to the duty you save. CloudDesk performs a Pre-Import Duty Mapping to calculate exactly how much export growth you need. If the obligation is too high for your business plan, we advise on alternative schemes like MOOWR to save you from future legal traps.
To import a machine duty-free, you must prove a "Nexus"—that the machine actually helps produce the goods you export. We handle the Chartered Engineer (CE) Certification, ensuring the technical description of your machinery is bulletproof for DGFT and Customs.
You have 6 years to complete your Export Obligation (EO). CloudDesk’s EO-Dashboard tracks your progress year-by-year. We ensure you meet the "Block-wise" requirements (50% in the first 4 years, 50% in the next 2), so you don't lose your license halfway through.
The final hurdle is the Export Obligation Discharge Certificate (EODC). We manage the reconciliation of Shipping Bills and Bank Realization Certificates (e-BRC).Once the EODC is issued, we coordinate with Customs to release your Bank Guarantee (BG), putting your collateral back into your bank account.
Capital goods required for pre-production, production, and post-production. This includes machinery, spare parts, tools, jigs, and even specialized software (for service exporters). It also covers "Second-hand" machinery, though with stricter conditions.
Manufacturer exporters (with or without supporting manufacturers), merchant exporters tied to a manufacturer, and Service Providers (like Hotels, Hospitals, or IT firms) who earn foreign exchange.
You must export goods/services worth 6 times the duty saved within 6 years. This is in addition to your "Average Export Level"—meaning you must maintain your past performance and add the new obligation on top.
You must pay the saved duty plus 15% annual interest. CloudDesk’s primary value is identifying "Shortfalls" early and applying for EO Extensions or "Clubbing of Licenses" to avoid these penalties.
No. The machinery is subject to "Actual User Condition" until the EODC is issued. You cannot shift, sell, or lease the machine without prior permission. CloudDesk helps with Installation Certificates to prove the machine is in your factory.
This is the average of your exports in the 3 years preceding the license. You must maintain this average every year while the EPCG license is active. CloudDesk helps you track this "Invisible Obligation" so you don't default.
Yes. In 2026, units producing Green Energy equipment or units located in the North East/Hilly regions have a reduced Export Obligation (often 75% of the normal rate). CloudDesk checks your eligibility for these "Bonus Benefits."
If you don't want to take the risk of future obligations, you pay the duty upfront, do the exports, and then claim the duty back as a "Duty Credit Scrip." CloudDesk manages the scrip application to ensure you get your cash back.