Under this scheme an exporter is allowed to import New Capital goods (CKD/SKD) including computer software systems at 5% Customs duty subject to an export obligation equivalent to 5 times CIF value of capital goods to be fulfilled over a period of 8 years reckoned from date of issue of License over period of 8 year.
Salient features of this scheme are :- : 

Any manufacturer / service provider / merchant exporter tied up to supporting manufacturers is eligible to apply.

The obligation shall be fulfilled by export of goods capable of being manufactured or produced by use of Capital goods imported under scheme.

Deemed export benefits eligible for manufacturer supplying Capital goods to EPCG Licence holder.

Special package offered to Company acquiring unit, which is under BIFR under present new policy.

DGFT has announced 4 Policy Circulars whereby Applications for import of machinery will be issued by Regional Licensing Authority without referring to DGFT Delhi if description of Export Product and Capital goods applied for is tallying with Policy Circulars.

Export through third party(s) is also allowed under this scheme.

Fulfillment of Export obligation as per following proportions :

Period from the date of issue of Licence
Period of total export obligation
Block of 1st and 2nd year
NIL
Block of 3rd and 4th year
15%
Block of 5th and 6th year
35%
Block of 7th and 8th year
50%
In respect of Licences of Rs. 100 crore or more, the export obligation shall be fulfilled over a period of 12 years in the following proportion :-

Period from the date of issue of Licence
Period of total export obligation
Block of 1st and 2nd year
NIL
Block of 3rd and 4th year
15%
Block of 5th and 6th year
35%
Block of 7th and 8th year
50%

A professional Custom Agent should offer the following services :-

Preparing application as per data received.

Arranging for signature of Chartered Engineers, C.A etc.

Submission of application.

Follow - up till you get the Licence.

If required we can also undertake clearance of Capital goods from Custom Authorities.

Arranging Documents for proof of installation to Jt. DGFT and Customs.

Prescrutiny of Export Invoice before presentation to Customs.

Filing of report to Jt. DGFT on progress made in fulfillment of Export obligation against EPCG Licence on annual basis.

Applying for Extension of Export obligation if required.

Applying for closure / redemption of file after completion of Export.


They would require following documents for filing application :-

Proforma Invoice showing CIF Value and if FOB basis than indicate Freight and Insurance separately. (Not required if importing Computer System)

Catalogue.

Last 3 years export performance.

Registration Certificate with service tax authorities (Applicable for service providers)

Certified Copy of IEC reflecting manufacturer's unit address.

Certified Copy of Valid RCMC

Detailed Justification for import of Capital goods.

Status of Export fulfilled under previous EPCG Licences.

Certified Copy of Export house Certificate if applicable.

Certified Copy of ISO Certificate if applicable.

Certified Copy of SSI / Industrial Licence etc.

Capital Investment on Fixed Assets.