All DGFT Related Certificates
EPCG
What is Export Promotion Capital Goods (EPCG) Scheme
The objective of the Export Promotion Capital Goods (EPCG) Scheme is to facilitate import of capital goods for producing quality goods and services and enhance India's manufacturing competitiveness. EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty. Capital goods imported under EPCG for physical exports are also exempt from IGST and Compensation Cess up to 31.03.2020. Alternatively, the exporter may also procure Capital Goods from domestic market in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include:
- - Capital Goods as defined in Chapter 9
- - Computer systems and software which are a part of the Capital Goods
- - Spares, moulds, dies, jigs, fixtures, tools & refractories
- - Catalysts for initial charge plus one subsequent charge
EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
Pre-Requisites for Applying for EPCG Scheme
To apply for an EPCG scheme, an IEC is required. Other pre-requisites as mentioned in the Chapter 5 of Foreign Trade Policy and Hand book of Procedures may be referred.
What are the benefits of the EPCG scheme?
The Director General of Foreign Trade (DGFT) issued this scheme for exporters as it promotes Export by providing incentives and other financial assistance. The EPCG scheme benefits exporters in several ways:
- The EPCG Scheme offers duty-free imports of products if a requirement of export obligation equivalent to six times the duty savings amount on capital goods is met within six years.
- The EPCG license offers financial assistance to exporters by removing import charges.
- In the event of exporters with shipments under ₹1 crore, compliance requires the production of a bank or bond guarantee. The customs port must provide the bond for exporters with an export above ₹1 crore. But, a bank guarantee is not required.
- Once the exporter obtains the EPCG license, they must register it at the port of entry to be eligible for duty waivers when submitting the Bill of Entry.
- It helps encourage the fast-track enterprise to promote exports.
What is the function of EPCG?
EPCG is a Government Scheme primarily related to machinery, its parts, and other similar products that exporters use to manufacture goods. This scheme covers manufacturer exporters and provides financial assistance to import machinery goods. The main objective of this scheme is to promote the production of quality goods in India and transport them site the country to speed up the growth of the national economy.
Documents required for EPCG license
You will need these documents to obtain the EPCG license including:
- Import Export Code (IEC)
- Pan Card
- Proforma Invoice
- Digital signature
- GST Registration Certificate
- Excise Registration (if registered)
- Registration certificate from Tourism Department
- Brochure
- Registration cum Membership Certificate (RCMC)
- Self-Certified Original Copy of Certificate of Chartered Accountant
- Self-Certified Original Copy of Certificate of Chartered Engineer
Capital goods allowed under the scheme
Under this scheme, an importer can import these machinery goods, including spares, dies, tools, jigs, moulds, and fixtures. Moreover, importers can also import second-hand capital items without considering their age.
Government Benefits for Exporters
The government of India offers various benefits to exporters to support and promote the export industry. These benefits include financial incentives, schemes like the EPCG scheme, and streamlined customs procedures to facilitate exports.
Registration Cum Membership Certificate In ESC
Most often, registering your business under the various authorities has its perks and advantages. The same can be said about obtaining the Registration Cum Membership Certificate (RCMC). The RCMC is a certificate that authenticates an exporter who deals with products registered with an agency or authority of the government. The certificate has a validity period of five years.
The RCMC is granted by an Export Promotion Council (EPC)/Commodity Board/Development Authority or any other competent authority prescribed under the Foreign Trade Policy. Under the Foreign Trade Policy of India, exporters are required to register with EPC citing their main line of business.
Who issues the RCMC?
The certificates are issued to the exporters and importers by Registering Authorities. They include Export Promotion Councils (EPCs), Commodity Boards and Export Development Authorities. These bodies are authorised to act as Registering Authorities by the DGFT (Director General of Foreign Trade).
There are currently 35 organisations that act as Registering Authorities. They comprise of:-
- 27 Export Promotion Councils
- 6 Commodity Boards
- 2 Development Authorities
The main aim of these bodies is to promote and enhance the development of Indian exports. They are divided into different sectors, each one responsible for a particular group of products.
Electronics and Computer Software Exports Promotion Council
ESC is an Export Promotion Council that aims at promoting and developing electronic equipment and computer software and IT Enabled Services related exports.
| Electronics Hardware |
Computer Software |
IT Enabled Services |
| Consumer Electronics |
Customised Software Development |
Knowledge Process Outsourcing |
| Electronics Hardware |
Computer Software |
IT Enabled Services |
| Medical and Office Equipment |
Software Products |
Business Process Outsourcing |
| Electronic Components and Subcomponents |
Software Products |
Research Process Outsourcing |
| Computer Hardware and Peripherals |
Software Products |
Legal Process Outsourcing |
The Foreign Trade Policy of India mandates that the RCMC is necessary to avail the following benefits:-
- Authorisation to export or import any item.
- Benefits and concessions under the FTP including – a) Advanced License. b) Duty Drawback Scheme. c) Deemed Export Benefit. d) Duty-Free Import Authorization (DFIA) Scheme. e) RODTEP Scheme. f) Zero duty Export Promotion Capital Goods (EPCG) scheme. g) Any other licenses to import or export. h) At the time of export, no need for a Bank Guarantee. i) Access to Trade Fairs and Catalogue Shows in India and abroad. j) Access through foreign companies to buyer-seller matching.
Registration Procedure of RCMC
Form ANF – 2C is the application form that needs to be filled in and submitted with the ESC. It will comprise of the following details:-
- Name and Address of the concerned Export Promotion Council.
- Name of the Applicant.
- Registered Office Address of the Applicant.
- Name and Address of branches (if any).
- Import Export Code number and details.
- Export House Certificate number.
- Product for which registration is sought.
- Declare the main line of business.
Documents to be Submitted along with RCMC Registration Form
- Self-attested copy of the Import Export Code issued by the DGFT.
- Copy of the Partnership Deed (in case of a Partnership Firm)
- Copy of the Memorandum of Association (MOA) and Articles of Association (AOA) (in case of a Company).
- Copy of the Trust Deed (in case of a Trust).
- Details of the names, residential addresses, contact numbers and other relevant details of the Partners/Directors, as the case may be.
- For the manufacturing segment, copy of proof that the applicant is a manufacturer (SSI Registration, SIA Certification).
- Preceding year’s export turnover figure certified by a Chartered Accountant is mandatory. In a case where there were no exports, NIL certificate to be obtained.
- Annual Membership Fees applicable to be paid via Demand Draft or Cheque payable, drawn in favor of “Electronics and Computer Software Export Promotion Council” payable at New Delhi.
