Advance Authorisation & EPCG Scheme in Pune: Zero Duty Capital Goods Import & Export Obligation

Zero-Duty Import Schemes: Advance Authorisation and EPCG in Pune

For Pune manufacturing enterprises investing in modern CNC machinery, industrial robots, or importing expensive raw materials, customs import duties can severely strain financial liquidity. The Foreign Trade Policy offers two powerful duty-exemption instruments: Advance Authorisation (for duty-free raw materials physically incorporated into export products) and the Export Promotion Capital Goods (EPCG) Scheme (for zero-duty import of capital machinery).

Under the EPCG scheme, a manufacturer can import advanced machinery at 0% Customs Duty, subject to fulfilling an Export Obligation (EO) equal to 6 times the duty saved over a 6-year period. Managing license issuance from DGFT Swargate, port customs execution, redemption, and obtaining Export Obligation Discharge Certificates (EODC) requires specialized technical expertise. KOKJAGUAR Consultancy manages complete EPCG and Advance Authorisation portfolios. Review our DGFT licensing advisory.

Advance Authorisation vs EPCG Scheme

• Advance Authorisation: Duty-free import of raw materials, packaging, and fuel based on Standard Input Output Norms (SION); export obligation fulfilled within 18 months.
• EPCG Scheme: Zero-duty import of capital equipment and toolings; export obligation fulfilled over 6 years.
• EODC Closure: Formally closing export obligations with DGFT to cancel customs bank guarantees.