EPCG Certification and Consultancy Services

EPCG stands for Export Promotion Capital Goods (EPCG) Scheme. This scheme facilitates the import of capital goods to augment India’s export competitiveness and for manufacturing quality goods. With the help of the EPCG scheme, capital goods that are used in the post-production, pre-production, and production can be imported without customs duty payment.

Sapient Services offers EPCG Scheme Installation Certificate services. Skilled chartered engineers issue these certificates. We ensure that the certificates comply with customs regulations and the Foreign Trade Policy.

Understanding the EPCG Scheme and Its Compliance Framework

The EPCG scheme enables an importer to import capital goods at customs duty zero rates. However, this scheme is subject to an export value that is equivalent to six times the duty saved on such capital goods importation within six years from the issuance date of the authorization.

If you’re unable to submit this certificate within the specified period, it may lead to the following consequences:

• Non-closure of the authorization of EPCG.
• Delay in the discharge of export obligation.

What Is an EPCG Installation Certificate?

After you have installed the capital goods at the factory premises, you need to obtain

a certificate from an Independent Chartered Engineer or the Jurisdictional Customs authority at the option of the EPCG License Holder.

The certificate confirms the following:

• Installation or location.
• Matching of serial numbers with all the import documents.
• Capital goods readiness for commercial use.
• Imported machinery’s details.

The EPCG installation certificate is a prerequisite for the holder of EPCG authorization before proceeding toward the eventual closure and fulfillment of export obligation.

Who Needs to Obtain an EPCG Installation Certificate?

The following people need to have an EPCG installation certificate.

• Service providers who want to avail themselves of the benefits of EPCG.
• Exporters who are using supporting manufacturers.
• Importers who have availed of their machinery tax exemption.
• Manufacturers who are importing goods under EPCG.

Whether the capital goods have been installed at the premises of a supporting manufacturer or at the own factory of the importer, the need for certification remains applicable.

Who Can Issue an Installation Certificate Under EPCG?

Customs and DGFT have recognized two authorities that can issue an installation certificate.

Independent Chartered Engineer

When it comes to inland manufacturing units, an independent Chartered Engineer can issue the installation certificate. This is mainly preferred and accepted because of the Chartered Engineer’s technical expertise and efficiency.

Sapient Services facilitates EPCG installation certificates issued by the Chartered Engineer. These certificates are accepted by authorities and are verifiable and compliant.

Jurisdictional Customs Authority

At times, customs officers inspect the installation physically and issue the EPCG installation certificate.

Step-by-Step EPCG Installation Certificate Process

Sapient Services follows a compliance-driven process.

• First, we check the import documents and EPCG authorization.
• A physical inspection is scheduled at the installation site.
• Then we verify serial numbers and details of the machinery.
• We assess usage and installation status.
• After this, we issue the installation certificate.

• We also provide guidance on compliance with Customs or DGFT regulations.

Documents Needed for EPCG Installation Certificate

These documents are needed to obtain the EPCG installation certificate.·     

• Entry Bills.
• Authorisation copy of EPCG.
• Packing list and commercial invoices.
• Address proof of premises or factory.
• Details of the installation or layout of machinery.
• Previous correspondence, if any, with Customs or DGFT.

Role of a Chartered Engineer in EPCG Compliance

The role of a Chartered Engineer is very important as they provide independent technical certification that confirms the following:

• Compliance with all the declared specifications.
• The machinery’s physical installation.
• Alignment with the conditions of EPCG authorization.
• This professional certification holds immense importance as it validates EPCG compliance, making credibility and accuracy important.

Why Choose Sapient Services for EPCG Installation Certificate?

Sapient Services is a leading Export- Import DGFT consulting company. We offer a wide

range of services, including Redemption and Issuance for Export Promotion Capital Goods (EPCG) Scheme.

Our clients rely on us because:

• We have a presence all across India. 
• We have experience across engineering, healthcare, and manufacturing.
• We follow a compliance-first approach.
• We extend our support to our clients beyond certification.
• The certificates are issued by our Chartered Engineers and are easily accepted by authorities.

Frequently Asked Questions

Q-1: Why is an installation certificate needed?

Ans: An Installation Certificate is needed to confirm to DGFT that the imported capital goods have been installed at the said factory premises. It also confirms that the capital goods usage has started for production.

Q-2: Who can issue an installation certificate?

Ans: An installation certificate can be generated by an Independent Chartered Engineer or obtained from the Jurisdictional Customs Authority.

Q-3: What is an EPCG installation certificate?

Ans: The EPCG Scheme facilitates capital goods import for producing high-quality services and goods, thereby enhancing our country’s manufacturing competitiveness. It allows capital goods import for production, post-production, and pre-production at zero customs duty.

Q-4: Why choose Sapient Services for the installation of the EPCG certificate?

Ans: Sapient Services provides EPCG certification and compliance services across India. Our Chartered Engineers issue certificates that are accepted by authorities. We offer support that extends beyond certification.

Q-5: What is the role of a Chartered Engineer in EPCG Compliance?

Ans: A Chartered Engineer provides independent technical certification that confirms the compliance with all the declared specifications and the machinery’s physical installation.

Q-6: What documents are needed for the EPCG installation certificate?

Ans: For the EPCG installation certificate, you will need the entry bill, authorisation copy of EPCG, packing list, commercial invoices, address proof of premises or factory, and details of installation or layout of machinery.

Q-7: What is the deadline for the EPCG certificate’s submission?

Ans: The deadline for the EPCG certificate’s submission is within 6 months from the completion of the import of capital goods.

Q-8: Is an installation certificate needed for the closure of EPCG?

Ans: An installation certificate is needed before the closure and discharge of the export obligation.

Q-9: What should be taken into consideration while issuing the EPCG certificate?

Ans: When issuing the EPCG certificate, you should keep in mind that it complies with customs regulations and the Foreign Trade Policy.

Q-10: Who needs to obtain an EPCG Installation Certificate?

Ans: An EPCG installation certificate is needed by service providers who want to avail themselves of the benefits of EPCG, exporters who are using supporting manufacturers, and importers who have availed themselves of their machinery tax exemption.