Duty-free inputs
EPCG
Export Promotion Capital Goods Scheme
Import machinery at zero customs duty if you export goods worth six times the duty saved, within six years.
Current status
In force under Chapter 5 of FTP 2023 (para 5.01).
dgft.gov.in ↗What you get
Zero customs duty on capital goods, plus exemption from IGST and compensation cess for physical exports. You may also buy the machines in India instead of importing.
Who can use it
Manufacturer exporters, merchant exporters tied to supporting manufacturers, and service providers, buying capital goods not on the negative list (Appendix 5F).
How to claim it
- Apply online on dgft.gov.in (ANF-5A) with the machine details and duty saved.
- Import within 24 months of issue — EPCG authorisations cannot be revalidated.
- Export six times the duty saved within six years, and keep up your average export obligation.
- Apply for redemption with export proof once the obligation is met.
Watch out for
- The average export obligation is on top of the six-times obligation — many firms miss it.
- Machines cannot be sold or moved until the obligation is met, except as the rules allow.
Sources (1)
Products it applies to
Free to exportTextiles & apparelCotton yarnBulk cotton yarn sold to weaving and knitting mills abroad; Bangladesh is by far the largest buyer.HS5205Exports 2025-26US$ 3.22 bn ↓4.1%
Free to exportTextiles & apparelReadymade garmentsKnitted and woven clothing for brands and retailers; the USA, UK, UAE and the EU are the big buyers.HS6109.10Exports 2025-26US$ 15.8 bn ↓1.2%
Free to exportTextiles & apparelHome textiles (bed, bath and kitchen linen)Bedsheets, towels and kitchen linen for retailers; the USA buys more than half of India's exports.HS6302Exports 2025-26US$ 2.01 bn ↓5.7%
Free to exportHandicraftsGlasswareTumblers, tableware and decorative glass from Firozabad and other centres; UAE and USA lead.HS7013Exports 2025-26US$ 55.9 mn ↑47.1%
More schemes
All schemes →- Duty-free inputsAdvance AuthorisationAdvance AuthorisationImport the raw materials for an export order without paying customs duty or IGST, on the condition that you export the finished goods.Read →
- Tax refundRoDTEPRemission of Duties and Taxes on Exported ProductsRefunds hidden taxes (fuel, electricity duty, mandi tax, stamp duty and the like) that are not refunded any other way, as a percentage of FOB value.Read →
- Tax refundRoSCTLRebate of State and Central Taxes and LeviesThe RoDTEP-like rebate for apparel, garments and made-ups (HS Chapters 61, 62 and 63). These items get RoSCTL instead of RoDTEP.Read →