| Particular | EPCG Certificate | Advance Licence (Advance Authorization) |
|---|---|---|
| Purpose | Duty-free or concessional import of capital goods (machines, equipment, tools) | Duty-free import of raw materials, components, consumables, and packing materials used in export production |
| Issued by | DGFT | DGFT |
| Main Benefit | Reduces import duty on capital goods | Exempts customs duties on imported inputs |
| Condition | Exporter must fulfill the prescribed Export Obligation (EO) | Exporter must use the imported materials to manufacture goods that are exported |
| Validity | As specified in the authorization and DGFT policy | As specified in the authorization and DGFT policy |
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