EPCG Registration

The Indian government created the Export Promotion Capital Goods Scheme (EPCG Scheme) to encourage exports of capital goods  worth ₹ 1,000 crore or more.. The program offers a variety of benefits, such as export credit and insurance, reduced duties, and tax breaks. Over the following five years, it is anticipated to boost exports of capital goods worth 50,000 crore.

The Export Promotion Capital Goods Scheme has been introduced by the Indian government. This plan will finance the acquisition of capital items utilized in exports. The program's objectives are to boost exports and generate employment in the nation. Projects that have registered with the Export Promotion Council of India are eligible for the program. Funding requirements include a minimum investment and a two-year timeframe for projects.A grant from the government or a loan from a for-profit financial organization are the two ways to obtain funding. There are many advantages to signing up for the program. First, government subsidies and loans are offered to registered initiatives that are not to other enterprises. Second, the government may grant tax benefits and marketing aid to registered projects. Third, projects that have registered have access to export credit insurance from foreign financial institutions. Project managers must submit an application form and a comprehensive project plan in order to be considered for financing under the program. You may find the application form online. The proposal should contain details on the project's objectives, schedule, finances, and business plan.

This program would give businesses that want to export capital goods funding in the amount of up to 500 crore. For a period of five years, import taxes on capital goods exported under this program will be exempt. Companies registered with the Department of Industrial Policy and Promotion (DIPP) are eligible for the program

• All the Computer systems and software imported as capital goods;
• All the capital goods comprising semi-knocked down and complete-knocked down conditioned goods;
• Catalysts for initial charge along with one ensuing charge;
• Jigs, tools, spares, dies, moulds, and refractories.

According to the FTP 2015–20, capital goods are any machinery, equipment, or accessories needed for the production or manufacture of goods or the provision of services, whether directly or indirectly. This definition includes items needed for expansion, modernization, or technological advancement. Equipment and machinery for packaging, refrigeration, machine tools, power generating sets, equipment, and instruments for testing, research and development, quality assurance, and pollution control are all included.

Mining, manufacturing, aquaculture, floriculture, pisciculture, sericulture, animal husbandry, poultry, horticulture, viticulture, and the services sector are all possible uses for capital goods.

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Benefits under EPCG Scheme can be availed by any exporter irrespective of their turnover. EPCG License can be granted to the following exporters category:

• Manufacturer Exporter
• Merchant Exporter with a supporting manufacturer
• Service Provider

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Following documents are required for obtaining EPCG License:

• IEC or Import Export Code
• Digital Signature
• PAN Card
• Brochure
• RCMC or Registration Cum Membership Certificate
• Registration Certificate from Tourism Department
• Proforma Invoice
• Excise Registration (if registered)
• Self-certified copy + original certificate of AC
• GST Registration Certificate

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Kindly note that the following vital points to be noted to ensure the documents are prepared error-free:

IEC or RCMC must show the applicant as a manufacturer exporter

IEC or RCMC should have the address where the machine is proposed to be installed

SSI or MSME or Manufacturing proof must have the export products listed in the EPCG License

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