Export Promotion Capital Goods Scheme ties zero-duty capital goods imports to prescribed export obligations and compliance conditions. The EPCG Scheme permits import or domestic procurement of specified capital goods at concessional or zero customs duty for export production, subject to an Actual User condition and an export obligation generally equivalent to six times the duties, taxes and cess saved, to be met within six years. Authorisations are valid for 18 months and exclude second hand goods and most power generation/transmission capital goods. Indigenous sourcing reduces specific export obligation and confers deemed export benefits to domestic suppliers. The scheme includes incentives for early EO fulfilment, reduced EO for green and specified regional units, Post Export Duty Credit Scrips, BIFR rehabilitation extensions, and EFC approvals for restricted items.