EPCG Export Obligation Tracker Worksheet for Indian Exporters
The Export Promotion Capital Goods scheme lets manufacturers import capital goods at zero or concessional customs duty against a promise to export. This worksheet keeps every licence and its balance in one table.
| Authorisation no. | Capital goods | Issue date | Duty saved | Export obligation (6x) | Exports achieved | Balance obligation | Fulfilled | Block end date | |
|---|---|---|---|---|---|---|---|---|---|
Rs 10,800,000 | Rs 4,600,000 | 57.4% | |||||||
Rs 5,700,000 | Rs 3,900,000 | 31.6% | |||||||
Rs 7,200,000 | Rs 6,300,000 | 12.5% | |||||||
Rs 3,600,000 | Rs 3,600,000 | 0% |
The six-times duty saved obligation reflects the standard EPCG condition over six years from authorisation issue. Exports credited must meet DGFT rules, and the actual period and ratio depend on your authorisation terms. Replace the sample rows with your own and confirm against the DGFT portal.
Link shipping bills to licences in your ERP
Optional review of automating EPCG fulfilment reporting from your ERP sales data.
Optional. The tool and every export work without this. No spam.
How to use the worksheet
Add one row per authorisation. Enter duty saved on the imported goods and the exports credited so far. The sheet computes the obligation at six times duty saved, the remaining balance and a percentage fulfilled. Totals at the bottom show your overall position, which is useful for monthly reviews with the finance team and before any regional authority application.
- Update exports after each shipping bill is realised
- Track the block end date to avoid shortfall
- Export to Excel for audit files
How the obligation works
Under the scheme the holder must export goods worth a multiple of the duty saved, commonly six times, within a stated period from the authorisation issue date. Exports of the goods made with the capital equipment normally count, subject to scheme rules. On fulfilment you apply for an Export Obligation Discharge Certificate, which closes the licence.
Reading the results
In the sample, the first licence saved Rs 18 lakh of duty, giving an obligation of Rs 1.08 crore, with Rs 62 lakh achieved and Rs 46 lakh balance, about 57 percent. A licence near its block end with low fulfilment needs action: shift product mix, add buyers, or consider an extension or composition fee under the policy.
Common mistakes and ERP notes
Plants often lose track of which shipping bills are linked to which authorisation. Tagging export invoices and customs references to the licence number in the ERP sales module makes the fulfilment report almost automatic. Also confirm that realisation, not just shipment, is counted where the rules require it.
Frequently Asked Questions
What is the usual EPCG export obligation?
The usual condition is export of goods worth six times the duty saved on the imported capital goods, to be fulfilled within six years from the issue date of the authorisation. Terms can differ by policy period, so check the licence.
Can domestic supplies count?
Certain deemed exports and supplies to specific entities may be counted under the policy, but not all domestic sales qualify. Review the Foreign Trade Policy and Handbook of Procedures for your authorisation year.
What happens on shortfall?
If the obligation is not met, the holder may need to pay customs duty saved with interest, subject to the provisions. Regularisation options and extension fees exist. Seek advice before the block end date.
How do I close an EPCG licence?
Apply for the Export Obligation Discharge Certificate through the DGFT portal with the required statements and certificates after the obligation is fulfilled. The certificate allows release of bank guarantees or bonds.
We can build a read-only ERP report that links export invoices and shipping bills to each authorisation automatically.
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