What duty exemption schemes are available for a foreign-owned exporter in India?

Advance Authorisation allows duty-free import of inputs that are physically incorporated into an exported product, subject to a fixed export obligation typically fulfilled within 18 months — it suits manufacturers importing raw materials or components for onward export. The EPCG scheme lets a company import capital goods at a concessional or zero duty rate in exchange for an export obligation calculated as a multiple of the duty saved, usually fulfilled over 6 years — relevant for exporters investing in machinery or equipment.

A Special Economic Zone (SEZ) unit goes further, offering duty-free import of both capital goods and inputs along with income tax benefits, but requires physical operations inside a notified SEZ and carries its own compliance and exit obligations if the unit is later wound down. Choosing between these depends on whether the priority is machinery investment (EPCG), raw material cost (Advance Authorisation), or a full duty-free operating environment (SEZ) — and each comes with its own export obligation and compliance tracking that needs to be planned for from day one, not treated as a formality.