Can IGCR and EPCG Be Availed Together

Importers often wonder whether they can benefit from both the IGCR (Import of Goods at Concessional Rate) and EPCG (Export Promotion Capital Goods) schemes simultaneously. While both offer customs duty concessions, they operate under different frameworks and serve distinct purposes. Their combined use is possible only under specific conditions.

1. Understanding the Two Schemes

• IGCR Scheme: Allows import of inputs, raw materials, or goods at a concessional duty rate for manufacturing or service use within India. It focuses on domestic production and cost efficiency.
• EPCG Scheme: Allows import of capital goods at zero or reduced customs duty against an export obligation. It is an export-linked benefit under the Foreign Trade Policy (FTP).

2. Can They Be Used Together

Both schemes can be availed together only if the same goods are not claimed under both benefits. For instance:

• You can import raw materials under IGCR for domestic manufacturing.
• You can import machinery or equipment under EPCG for export-oriented production.

However, you cannot claim IGCR and EPCG on the same item, as it would amount to double benefit.

3. Key Conditions

• Maintain separate records for imports under each scheme.
• Ensure proper end use and reporting in line with Customs and DGFT requirements.
• Fulfil the export obligation under EPCG independently of IGCR compliance.

4. Conclusion

Yes, IGCR and EPCG can be availed together, but only for different categories of goods and with strict compliance. Combining them requires clear segregation of imports and adherence to both Customs and DGFT conditions.

Learn more about IGCR at https://www.jparks.co/services/apply-for-igcr-clearance/