Stage-I - Definitions / Meanings / Overview
| Sl No | Particulars | Meanings / Definitions |
| 1 | EPCG Scheme Definition | Export Promotion Capital Goods |
| 2 | EPCG Scheme Purpose | To Import Spare Parts for maintenance purposes for existing machinery which is not available in India. |
| 3 | Benefit | To avail / get Customs Duty Exemption (All Duty Free). |
| 4 | Obligation – SEO (Specific Export Obligation) | Require to fulfil Export Obligation (SEO), 6 Times of Actual Duty Saved. |
| 5 | Obligation – AEO (Average Export Obligation) | In addition to SEO, require to fulfil / maintain Average Export Obligation (AEO) till SEO fulfilled year. |
| 6 | Stipulation - Import | 24 Months from EPCG Date. |
| 7 | Stipulation - Installation | Require to submit Installation Certificate within 3 years from the date of import. |
| 8 | Stipulation - Export | 6 years from EPCG Date (50% during 1-4 Years & balance 50% during 5-6 Years) |
| 9 | Initial Cost / Financial Implication | Govt Fees for EPCG Scheme, Certification Charges for CA, Chartered Engineer, & Consultancy Fee (Service Charges) + 18% GST. |
| 10 | Liability | In case of non-fulfilment of Export Obligation (EO) within stipulated time, then require to pay Customs Duty Saved along with applicable Interest to Customs Dept. |
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EXIM (Import & Export) (DGFT / Customs / GST) Consultant for Import Export Related Matters
EXIM (Import & Export) Audit
EXIM (Import & Export) Awareness
EXIM (Import & Export) Orientation Programmes Virtual (Online) / Class Room Sessions
EXIM (Import & Export) (DGFT / Customs / GST) Consultant
EXIM (Import & Export) Consultation
EXIM (Import & Export) Retainership
Filing of Appeal for Order in Original (O-i-O), Show Cause Notice (SCN) Reply, Demand Notice reply, Export Obligation Monitoring (EOM) Reply, Directorate of Revenue Intelligence (DRI) Reply, Customs Audit Query Reply
Stage-II - Pre-cautionary Measures require to adopt while applying for EPCG Scheme
| SN | Check Points |
| 1 | Figure out “Import” & “Export Product Nomenclature” duly mentioning Technical Specifications and Model Nos. |
| 2 | Classify both Import Items and Export Products at appropriate ITC (HS) Codes before applying for EPCG Scheme. |
| 3 | Do not mention lengthy Product Descriptions which may lead to complications while monitoring & final closure of EPCG Scheme. |
Stage-III - Import Procedure
| 1 | Register EPCG Authorisation with concerned Customs Authority (Port of Import mentioned on EPCG) by executing General Bond (LUT) in prescribed format on ₹ 100 Stamp Paper duly notarised with or without BG. For BG Exemption, you may contact us. |
| 2 | Before filing of Bill of Entry (BE) with Customs, please ensure for the correctness of Import Item Description, ITC (HS) Code, Qty, UOM, CIF Value (FC) on Import Invoice, and other relevant documents which should exactly be as per EPCG License / Authorisation. |
| 3 | Get Import clearance from Customs. |
| 4 | Keep Accountability of Spare Parts Imported and its utilisation / put into use by maintaining separate register. |
| 5 | Put into usage of Spare Parts. Arrange Installation Certificate. Submit the same to DGFT & Customs within 36 months from the date of import (BE Date). |
Stage-IV - Export Procedure
| 1 | Manufacture Finished Product for Export. |
| 2 | Execute Exports duly mentioning Export Product, ITC (HS) Code, EPCG No & EPCG Date on Shipping Bill, which should be exactly as per EPCG. |
Stage-V - Post Export Procedure
| 1 | Apply for Export Obligation Discharge Certificate (EODC) after completion of Export Obligation. |
| 2 | On receipt of EODC, approach Customs Dept for “Bond Cancellation” & “BG Release”. |
Stage-VI - Challenging Grounds / Critical Stages in EPCG Scheme
| 1 | EPCG AEO Exemption / Correction / Reduction / Re-fixation |
| 2 | Addition of Alternative / Same / Similar Export Products in EPCG License / Authorisation (Amendment) |
| 3 | Non mentioning / Wrong mentioning of EPCG No & Date in Shipping Bills |
| 4 | EPCG Third Party Exports / Non mentioning of Third party Details in Shipping Bills |
| 5 | Export of Alternative Products other than Export Products mentioned in EPCG |
| 6 | Late Submission of Installation Certificate (IC) / Late Installation of Capital Goods |
| 7 | Installation Certificate by Chartered Engineer (CE) instead of Central Excise |
| 8 | Mismatching of Export Product Description in Shipping Bills and EPCG |
| 9 | Sale of Capital Goods / Shifting of Capital Goods |
| 10 | Merger / De-merger / Amalgamation / Acquisition / Takeover / Outright Selling / Slump Sale |
| 11 | EPCG Free Shipping Bills |
| 12 | Group Company Consideration |
| 13 | SEZ Exports - Realisation in INR |
| 14 | Counting / Transfer of Excess Exports from One EPCG to another EPCG |
| 15 | Supporting Manufacturer as Co-licensee |
| 16 | Change in Company Name / Factory Address in EPCG |
| 17 | EPCG Clubbing Provisions |
| 18 | EPCG Procedural Lapses |
| 19 | Denied Entity List (DEL) removal from RLA (Local DGFT) |
our Suggestion
| 1 | Better to use / keep some kind of office tool (Customised Software) to keep Import & Export Accountability atleast for Duty Exemption Schemes (EPCG) wherever sizeable EXIM transactions are taking place. |
| 2 | Always better to hire "External Agency" to keep 2nd check of EXIM (Scheme related) transactions and also to validate documents of all EXIM Transactions to avoid last movement rush and complications. |
| 3 | Please reach us to get our expertise which will help you with proper Awareness, Guidance, Understanding & Quality Services to have leak proof mechanism to avoid unwanted financial implication on account of Penalty for late filing of Bill of Entry, Detention Charges & Demurrage Charges. |