With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
English
With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
Manage EPCG authorisations, licence validity, export invoice utilisation and export obligation visibility in one connected system.
Shipzy helps exporters maintain structured EPCG licence records and connect eligible export invoices with the relevant EPCG authorisation, making it easier for operations, documentation, finance and management teams to understand how each licence is being used.
What Is EPCG?
EPCG stands for Export Promotion Capital Goods.
The EPCG Scheme is designed to facilitate the import of eligible capital goods used for pre-production, production and post-production at zero customs duty, subject to fulfilment of the applicable export obligation.
Under the current Foreign Trade Policy framework, EPCG import is generally subject to a specific export obligation equivalent to six times the duties, taxes and cess saved, to be fulfilled within six years from the date of issue of the authorisation. EPCG authorisations are also subject to Average Export Obligation where applicable.
The scheme can cover manufacturer exporters, merchant exporters tied to supporting manufacturers and eligible service providers.
Why EPCG Management Becomes Difficult
Obtaining an EPCG authorisation is only one part of the process.
The larger operational challenge is maintaining visibility over the authorisation throughout its lifecycle.
Export teams need to know:
When this information is maintained across spreadsheets, invoice files and individual employee records, EPCG monitoring becomes difficult as the number of authorisations and export shipments increases.
Maintain a Central EPCG Licence Master
Shipzy provides a structured EPCG master so the business can maintain its EPCG authorisations in one place.
For each EPCG authorisation, teams can maintain key information such as:
EPCG Authorisation Number
Maintain the DGFT-issued authorisation or licence number used for identification.
Issue / Approval Date
Record when the EPCG authorisation was issued or approved.
Validity / Expiry Date
Maintain the relevant authorisation validity dates so teams can identify active and expiring licences.
Export Obligation Period
Where maintained by the business, record the applicable export obligation period separately from the import validity period.
Licence Status
Identify whether the authorisation is active, completed, expired or otherwise under follow-up.
Supporting Documents
Keep related authorisation documents available with the EPCG record for future reference.
This creates a single operational view instead of maintaining EPCG information across separate Excel files.
EPCG Authorisation Validity and Export Obligation Are Different
EPCG teams should distinguish the authorisation's import validity from its export obligation period.
Under FTP 2023, an EPCG authorisation is generally valid for import for 24 months from the date of issue, while the specific export obligation is generally required to be fulfilled within six years from the date of issue.
Keeping these dates separately visible helps avoid treating licence import validity and export obligation closure as the same milestone.
Link Every Relevant Export Invoice to the EPCG Licence
The EPCG licence becomes operationally useful when it is connected with actual exports.
While preparing an export invoice in Shipzy, the user can select the relevant EPCG authorisation against which that export is being considered.
The workflow becomes:
Instead of reconstructing EPCG utilisation later from shipment files, the licence relationship is captured during day-to-day export execution.
Know Which Exports Are Linked to Each EPCG Authorisation
When an EPCG licence is selected during invoice creation, the system creates a clear relationship between:
This helps teams review the underlying exports associated with each authorisation.
For example:
EPCG Licence: EPCG/2026/001
Linked exports:
Management can review the authorisation and immediately understand the export activity linked with it.
Track EPCG Export Obligation More Clearly
EPCG authorisations carry export obligations that must be fulfilled under the applicable DGFT conditions.
Under FTP 2023, the specific export obligation is generally six times the duties, taxes and cess saved and is required to be fulfilled within six years from the authorisation issue date. Average Export Obligation can also apply.
By linking export transactions with the relevant EPCG authorisation, Shipzy gives teams a clearer operational base for monitoring fulfilment.
Instead of waiting until the end of the licence period to identify supporting exports, teams can maintain the relationship as exports take place.
EPCG Reporting and Visibility
Shipzy can provide EPCG reports showing licence-level and export-level information in one place.
A typical EPCG view can help management review:
This makes it easier for export, finance and compliance teams to identify licences requiring attention.
From Licence Master to Export Obligation Visibility
1. Create EPCG Licence Master
Enter and maintain the EPCG authorisation details in Shipzy for centralised licence management.
2. Maintain Important Dates
Record the issue, approval, validity and applicable export obligation period to track important licence timelines.
3. Prepare Export Invoice
Create the export invoice through the normal export invoicing process in Shipzy.
4. Select the EPCG Authorisation
Link the relevant EPCG licence to the export invoice for proper authorisation tracking.
5. Complete the Export
Maintain the connection between the export invoice, shipment and selected EPCG authorisation for future reference.
6. Monitor Through Reports
Review licence utilisation, linked export transactions and pending EPCG follow-up through reports.
Recommended Workflow
From EPCG Authorisation to Export Obligation Tracking.
Reduce Dependence on EPCG Spreadsheets
Without a connected system, EPCG monitoring often depends on manually maintained Excel sheets.
A team may need to:
As the number of EPCG authorisations and export invoices increases, this becomes difficult to control.
With Shipzy, the licence and export relationship is captured during normal transaction processing.
One View for Multiple EPCG Authorisations
Exporters may operate with more than one EPCG authorisation at the same time.
Shipzy can maintain separate records for each authorisation so teams can understand:
Licence A
Licence B
Licence C
This gives the business licence-level visibility instead of combining all EPCG exports into one manual tracker.
Better Visibility Before Important EPCG Dates
EPCG management becomes significantly easier when important dates are visible before they become urgent.
Instead of checking licence documents individually, teams can review authorisation information from the system and identify EPCG licences that require follow-up.
This supports more proactive compliance management and reduces dependence on last-minute spreadsheet reconciliation.
EPCG Reporting Requirements
DGFT amended the EPCG reporting framework in September 2024. Under the revised provision, the authorisation holder submits export-obligation fulfilment reporting online after expiry of the first block period of four years and continuously until the valid export-obligation period expires. The report includes specified evidence such as Shipping Bill, invoice, Bill of Export or FIRC details, as applicable.
Shipzy's role is to maintain structured operational records and provide visibility into exports mapped against EPCG authorisations. Statutory reporting, certification and DGFT submissions should continue to follow the applicable DGFT process and current policy requirements.
EPCG and Export Documentation Work Together
EPCG should not operate as an isolated compliance record.
The relevant authorisation is connected with actual exports.
Shipzy connects EPCG information with export execution so the compliance team does not have to maintain a completely separate operational history.
The flow can connect:
This creates stronger traceability between the licence and the exports used against it.
EPCG for Manufacturer Exporters
The EPCG Scheme is particularly relevant to manufacturing businesses importing eligible capital goods to strengthen production capability.
The scheme's objective is to facilitate capital-goods imports for producing quality goods and services and improving manufacturing competitiveness.
For manufacturer exporters, Shipzy can connect EPCG management with the wider export workflow:
This gives compliance teams operational context instead of seeing EPCG as only an isolated licence record.
EPCG for Merchant Exporters
FTP 2023 also covers merchant exporters tied to supporting manufacturers under the EPCG framework.
Where applicable, Shipzy can maintain EPCG authorisation information and map relevant export invoices to the licence while the business continues to manage supplier, shipment and export documentation workflows through the platform.
Actual User Condition and EPCG Closure
Capital goods imported under EPCG remain subject to the Actual User condition until the export obligation is completed and the Export Obligation Discharge Certificate, or EODC, is granted.
This is another reason EPCG monitoring should continue beyond the initial capital-goods import.
The operational lifecycle does not end when the licence is issued or the machinery is imported.
EPCG Management Across Teams
Export Documentation Team
Select the relevant EPCG authorisation when preparing applicable export invoices.
Compliance Team
Maintain licence information, validity and obligation-related records.
Finance Team
Review export values and related licence utilisation information.
Management
See which EPCG authorisations are active and understand their linked export activity.
Audit and Review Teams
Access a more structured licence-to-export trail when information is required.
Why Exporters Use Shipzy for EPCG Management
Shipzy helps move EPCG monitoring from isolated licence files and spreadsheets into the export workflow itself.
The system helps businesses maintain a clearer connection between:
This gives exporters better visibility and a more structured operating process around EPCG compliance.
Frequently Asked Questions
What is EPCG?
EPCG stands for Export Promotion Capital Goods. The scheme facilitates import of eligible capital goods for pre-production, production and post-production at zero customs duty, subject to the applicable export obligation.
What is the export obligation under EPCG?
Under FTP 2023, the specific export obligation is generally equivalent to six times the duties, taxes and cess saved on the capital goods and is required to be fulfilled within six years from the date of issue of the EPCG authorisation. Average Export Obligation may also apply.
How long is an EPCG authorisation valid for import?
FTP 2023 states that the EPCG authorisation is generally valid for import for 24 months from the date of issue.
Who can use the EPCG Scheme?
The scheme covers manufacturer exporters with or without supporting manufacturers, merchant exporters tied to supporting manufacturers and eligible service providers, subject to applicable conditions.
How does Shipzy manage EPCG licences?
Shipzy allows businesses to maintain an EPCG licence master containing the authorisation number, important dates, validity and related information so that EPCG records remain available in one system.
Can an EPCG licence be linked with an export invoice in Shipzy?
Yes. While preparing an export invoice, the user can select the relevant EPCG authorisation so the export transaction remains linked with that licence.
Can Shipzy show which invoices are linked to an EPCG licence?
Yes. EPCG reporting can provide visibility into the export invoices and transactions associated with a particular licence.
Can Shipzy track multiple EPCG licences?
Yes. Separate EPCG authorisations can be maintained individually so teams can review their validity, linked exports and current position separately.
Does Shipzy replace DGFT EPCG compliance?
No. Shipzy helps maintain operational records, link export transactions and improve EPCG visibility. Statutory applications, reporting, certification and closure remain subject to the applicable DGFT process and current Foreign Trade Policy requirements.
What is EODC in EPCG?
EODC stands for Export Obligation Discharge Certificate. It relates to completion and discharge of the applicable export obligation under the EPCG authorisation. Capital goods remain subject to the Actual User condition until the export obligation is completed and EODC is granted.
Related Shipzy Solutions
Stop maintaining EPCG authorisations separately from your day-to-day export transactions.
With Shipzy, maintain EPCG licence information, select the relevant authorisation during export invoicing and get a clearer view of licence utilisation and export obligation activity.
Book a Shipzy DemoSee how EPCG management can work as part of your connected export compliance workflow.