EPCG redemption (closure of an Export Promotion Capital Goods license) is the final process where an exporter proves they have met their export obligations to obtain an Export Obligation Discharge Certificate (EODC). The key steps involve fulfilling the required export value, filing an online application, and submitting compliance documents.
Required Documents
- ANF-5B Form: Statement of exports for redemption.
- License & Bills: Original EPCG authorization, import bills of entry, and customs debit sheets.
- Proof of Export: Shipping bills, export invoices, and e-BRCs (Bank Realization Certificates).
- Certificates: Chartered Engineer's Installation Certificate and Chartered Accountant (CA) Certificate confirming EO fulfillment.
Outcome
- EODC Issuance: The Regional Authority (RA) issues the Export Obligation Discharge Certificate once satisfied with the fulfillment.
- Bond Cancellation: The EODC is submitted to Customs to clear the bank guarantee or bond executed at the time of import.
The step-by-step process for the redemption (closure) of an Export Promotion Capital Goods (EPCG) license involves two major phases: applying online with the Directorate General of Foreign Trade (DGFT) to get an Export Obligation Discharge Certificate (EODC), and then getting your bond cancelled at Customs.
Phase 1: Apply for EODC on the DGFT Portal
Step 1: Install and Verify Capital Goods
- Arrange a visit from an independent Chartered Engineer within 6 months of import.
- Obtain the Installation Certificate confirming the capital goods are installed at your factory.
- Upload this certificate on the DGFT portal immediately to avoid penalties.
Step 2: Track and Compile Export Data
- Collect all Shipping Bills that mention your specific EPCG license number.
- Download e-BRCs (Electronic Bank Realization Certificates) from the DGFT portal to prove foreign exchange realization.
- Get a Chartered Accountant (CA) Certificate certifying the final statement of exports and total duty saved.
Step 3: Log in and Fill Form ANF-5B
- Log into the DGFT Website using your Digital Signature Certificate (DSC) or IEC credentials.
- Navigate to Services > EPCG > Redemption / Closure.
- Fill out Form ANF-5B, entering details of imports, duty saved, and matching export shipping bills.
Step 4: Upload Required Documents
Scan and attach the following mandatory documents to your online application:
- Chartered Engineer Installation Certificate
- CA Certificate showing EO fulfillment details
- Statement of exports linked with shipping bills and e-BRCs
- Copy of the original EPCG Authorization
Step 5: Pay Fees and Submit
- Pay any applicable application or composition fees online through the payment gateway.
- Digitally sign the application using your DSC and click Submit.
- Note down the system-generated file number for tracking.
Phase 2: DGFT Review and EODC Issuance
Step 6: Address Deficiencies (If Any)
- Monitor your email and DGFT dashboard for status updates.
- If the DGFT Regional Authority (RA) raises a deficiency memo, upload the requested clarifications or missing documents immediately.
Step 7: Receive the EODC
- Once the RA verifies that you have met both the specific and average export obligations, they will digitally issue the Export Obligation Discharge Certificate (EODC).
Phase 3: Customs Bond Cancellation
Step 8: Apply for Bond Release at Port of Import
- Visit the Customs port where the capital goods were originally cleared.
- Submit a formal letter requesting the cancellation of the Bank Guarantee (BG) or Bond.
- Attach the DGFT-issued EODC and original custom debit sheets.
Step 9: Retrieve Your Bank Guarantee
- Customs officials will verify the EODC against their system data.
- Once satisfied, Customs will release and return your Bank Guarantee or Bond, successfully closing the entire EPCG lifecycle.