Process Flow EPCG
  • Issuance
  • Registrations With Customs
  • Imports
  • Installations of Capital Goods
  • Production/Exports of goods and services
  • Redemption and EODC
  • Bond Cancellation / Return of BG
  • Issuance

    increase of 57%
    A proper application after analyzing the past exports, export product/service of the company needs to be filed with the authorities. It is very essential that the application is filed with consequences in mind. Proper follow up and representation needs to be done to get the issuance of EPCG.
  • Registrations With Customs

    increase of 57%
    Once the EPCG is issued, it needs to be registered with the relevant customs authorities at the port of import. Before registration the customs asks for a Bond duty and interest payable in case exports do not happen within the time. Further customs also ask for bank guarantees as an additional security whenever they feel the revenue is to be safeguarded more.
  • Imports

    increase of 57%
    Once the EPCG is registered at customs, import against the same can happen while filing the bill of entry proper reference of epcg and the registration number at 17 have to be given the customs do not charge custom duty amount of custom duty saved is debited in the epcg account. Export obligation is in reference to this duty saved.
  • Installations of Capital Goods

    increase of 57%
    After all the consignments of equipment are imported and the installation of the same has happened at the factory for the project site on the server side and relation certificate it has to be made and submitted to the customs authority's and dgft authority's. It is important to submit this certificate with in six months of the goods.
  • Production/Exports of goods and services

    increase of 57%
    When the goods are produced and exported during the export obligation period under EPCG. It is very essential to take care of proper export documentation so that the export against EPCG are counted later on.
  • Redemption and EODC

    increase of 57%
    One speak exports are completed within time or before time. Water needs to approach the issuing authority with all the exports documents and realisation documents in a proper format requesting the authorities to redeem the licence and issue export obligation discharge certificate (EODC). In case the Exports are not completed within time authority is make given extension in the export obligation period.
  • Bond Cancellation/Return of BG

    increase of 57%
    EPCG holder needs to approach customs authorities to cancel his bond and bank guarantees once we export obligation discharge certificate is issued by the issuing authority this completes the process of EPCG.
for Sector Benefits

For Manufacturer

The scheme is quite beneficial to Manufacturer exporters as they can import their CG without basic customs duty and IGST. The manufacturers can use the capital goods not only for export but also for domestic manufacturing, provided the Export Obligations are met in time.

For Merchant Exporters

EPCG can be taken for the projects where exports of goods or services can be envisaged by the use of the project or alternative products. EPCG can be taken along with Project Import scheme in case of new Projects.

For Projects

The scheme is quite beneficial to Manufacturer exporters as they can import their CG without basic customs duty and IGST. The manufacturers can use the capital goods not only for export but also for domestic manufacturing, provided the Export Obligations are met in time.

For Service Provider

Various service providers/exporters can take EPCG route to reduce their Capital Cost. Service Providers like Hotels, Tour Operators, Taxi Operators, Construction Companies, Logistics companies can utilize the scheme.

For Others

Certain other sectors like BPO, Port Projects etc. can also utilize EPCG scheme to their advantage.

Role of Andees

It is very important to note in the above process, that foresight and experience can play a big role in not only getting an optimum license issued, but also in monitoring the export obligation and documentation at each point. Further in case of delay in exports, timely actions can save a lot of problems and liability in future. Finally a proper documentation and representation at the time of redemption can ensure a smoother and optimum closure, taking into account other EPCG, and also other schemes, compliances etc.

Andees has been assisting clients for the whole process of EPCG for the last more than 20 years. Sound knowledge of Policy & Procedures along with a very qualified and experienced team, Andees has handled hundreds of complicated matters related to EPCG, saving thousands of crores for clients that are MNCs, Indian Corporates, or PSUs. While proper planning during the entire life cycle has helped smooth operations, several complicated matters even at the last stage have been saved by Andees team from substantial liabilities.

Our Clients