EPCG & Advance Authorisation

About this Service

Customs duty on imported machinery and raw materials can crush an exporter's margins. The Export Promotion Capital Goods (EPCG) scheme and Advance Authorisation (AA) scheme are the two most powerful DGFT instruments to neutralise that cost — letting you bring machinery and inputs into India duty-free, in exchange for a measured export obligation.

EXPORTAS handles the entire lifecycle: norms fixation, application drafting, JDGFT/RA liaisoning, bond/LUT execution, redemption filings, and final closure once the export obligation is met.

What is EPCG and Advance Authorisation?

EPCG (Export Promotion Capital Goods) permits import of capital goods — machinery, equipment, spares — at zero customs duty, against an export obligation equivalent to six times the duty saved, to be fulfilled within six years.

Advance Authorisation (AA) permits duty-free import of input materials physically incorporated in the export product, including allowances for wastage. It applies to inputs imported either before or after exports, with obligations to be met within 18 months.

Who Should Avail This Service?

• Manufacturer-exporters and merchant-exporters tied to supporting manufacturers
• Units planning to import production machinery, plant or technical equipment
• Exporters of products requiring imported raw materials (textiles, chemicals, engineering goods, pharma)
• EOU, SEZ and STP units with specific scheme requirements
• Businesses seeking to optimise input cost structures for export competitiveness

Key Benefits

• Zero basic customs duty on imported capital goods (EPCG)
• Zero duty on input materials physically used in export production (AA)
• Significant working capital relief — no upfront duty payment
• Improved cost competitiveness in international markets
• Allowance for wastage and process losses in input norms
• Option for clubbing of authorisations for multiple shipments
• Eligibility for further benefits like duty drawback on indigenous inputs

Documents Required

• IEC and RCMC of the applicant
• Detailed list of capital goods or input materials with HS codes
• Standard Input-Output Norms (SION) reference or norms fixation application
• Past three years' export performance certificate by Chartered Accountant
• Pro-forma invoice or contract from foreign supplier
• Manufacturing process flow chart (for AA)
• Bond and Bank Guarantee (where applicable)
• Project report (for first-time EPCG holders)

Why Choose EXPORTAS for EPCG & Advance Authorisation?

• Two-decade combined expertise across DGFT, Customs, GST and corporate compliance.
• End-to-end ownership — application, documentation, follow-up, closure.
• Best Turnaround Time (TAT) with proactive milestone updates.
• Transparent, error-free, risk-free processing under defined SOPs.
• Affordable transaction cost with no hidden charges.