In the competitive landscape of Indian manufacturing, reducing operational costs while maintaining high-quality production is the key to success. One of the most powerful tools available to exporters is the Export Promotion Capital Goods (EPCG) scheme. At Kosmos Biz, we have empowered numerous industries by streamlining their EPCG issuance and compliance journey.

What is the EPCG Scheme?

The EPCG scheme is a government initiative that allows manufacturers to import capital goods (machinery and equipment) at Zero Customs Duty. In exchange, the business commits to an export obligation equivalent to 6 times the duty saved, to be fulfilled over a period of 6 years.

Why EPCG Issuance is a Game-Changer for Your Business

1. Massive Cost Savings: By eliminating customs duty, you can save up to 25-30% on your total machinery cost. 2. Technological Upgrade: It allows you to import world-class technology that might otherwise be too expensive due to high import taxes. 3. Competitive Edge: Lower production costs mean you can price your products more competitively in the international market.

The Step-by-Step Process of EPCG Issuance   

 Getting an EPCG license requires precision and a deep understanding of DGFT (Directorate General of Foreign Trade) protocols. Here is how we handle it: * Pre-Application Audit: We analyze your project to ensure the machinery qualifies under the latest Foreign Trade Policy. * Documentation & Filing: Our team prepares the comprehensive set of documents required for the DGFT application to ensure a “first-time-right” submission. * Liaisoning with Authorities: We represent your case before the DGFT and Customs to resolve any technical queries and expedite the issuance. * Bond & Bank Guarantee (BG): We assist in the registration of the license with Customs and help manage the necessary bonds.

Common Challenges in EPCG Management

Many businesses struggle with the Export Obligation (EO) tracking. Failure to maintain proper records or meet deadlines can lead to heavy penalties and interest. This is where Kosmos Biz adds value—we don’t just help you get the license; we ensure its 100% successful redemption (EODC).