About EPCG
EPCG Consultants - We are a group of like-minded professionals with close to 15 years of experience in the industry.We provide all DGFT Consultant services as well.
What is EPCG Scheme?
EPCG Stands for Export Promotion Capital Goods The EPCG plan aims to boost the quality and quantity of Indian exports while strengthening India's industrial capabilities. Manufacturer exporters, whether they have a supporting manufacturer or not, merchant exporters connected to a supporting manufacturer and service provider, and service providers looking to grow their company outside of India are the key beneficiaries of the program. The best EPCG license consultants in Hyderabad, India, will always be available to cater to the needs oftheir customers.
There are several variations of this plan. The "Zero Duty EPCG scheme" is the current iteration. The scheme's advantage is that it allows enterprises to import capital goods without having to pay customs duties at the time of importation, provided that they comply with the export obligation requirement. Under this program, the IGST is also exempt from customs duty. The program may also be used to import Spare parts and capital goods from indigenous suppliers.
Types of export obligations under this EPCG scheme:
Specific Export obligation– calculated as six times the duty saved amount. You must fulfill a minimum of 50% of export obligation in each block of years, i.e., the first block being the first 4 years and the second block is of the remaining 2 years.
Average Export obligation - The export obligation is over and above, the average level of export achieved by you as an authorisation holder in the preceding three licensing years for the same and similar products within the overall export obligation period including the extended period (if any).
Import of capital goods under EPCG scheme
This Scheme is a beautiful and flexible arrangement. The Scheme benefits are as follows:
Import of all general Capital goods are allowed under this duty free scheme except the Capital goods, which are listed in Appendix-5F.
No restriction on the number of goods imported.
EPCG Consultants
EPCG Consultants is a leading consulting company that provides services related to EPCG scheme like arrangement of new EPCG licence, Submission of Installation certificate, monitoring of existing EPCG licences and etc.,
Closure of EPCG licences
We further extend our services to closure EPCG licences by submitting proper EODC application to the concerned DGFT. EDOC stands for Export Obligation Discharge Certificate. It is needless to say that, we have immense experience in handling long pending EPCG licences.
Annual EO Fulfillment reporting by EPCG
A report on the annual fulfillment of export responsibilities from authorization holders must be sent to the relevant RA by June 30th. Such a report must include information such as the shipping bill or GST invoice number, the date of the export or supply, the description of the commodity, and the FOB or FOR value of the export or supply for both specific and average export requirements. A late charge of Rs. 5000 must be paid for each financial year, per authorization, to regularize any delays in completing such an annual report.
Automatic Decrease or Increase in Export Obligations
Export obligation would increase in the authorization if the duty saved amount specified on licenceexceeds not more than 10%. Such Capital goods will automatically be permitted to be cleared by customs without the relevant RA's permission. When applying for EODC, the Authorization Holder should provide the RA in question with an extra cost to compensate for excess imports impacted in terms of duty saved amount. The export obligation will automatically increase in line with that.
A change in exchange rates between the time of application and the time of import, as well as an increase or decrease in the volume of imports, might account for the excess or decreased duty saved.
EPCG consultants are experts in the field of this Export promotion Capital Goods scheme. We have a wide range of experience and expertise, which makes them the most reliable source for information on this scheme.