Prohibited items under the EPCG program are items that violate national and international regulations. Or pose a risk to India’s security and public safety. These products cannot be imported under this program even though those products may be useful for running a business.
The list of prohibited goods is part of foreign trade policy. It serves to ensure that sensitive materials enter the country with proper disposal.
To ensure that businesses Follow EPCG guidelines, the Directorate General of Foreign Trade (DGFT) will provide regular updates on prohibited goods.
It is essential for businesses to be aware of any changes to their listings and to seek professional advice if they have any questions about a particular product.
This is where Curated Exim consultants play a crucial role in helping businesses comply. Keep up to date with the latest regulations. And guarantee that they will not violate any trade restrictions.
Examples of Prohibited Goods
The list of prohibited items under the EPCG scheme is comprehensive and covers a wide range of products. These goods generally include items that may have a direct impact on national security and public health or are subject to international sanctions. The following are the specific products prohibited under the EPCG scheme:
- Cables: Permitted only as an integral part of Capital Goods
- Railway wagons (excluding specialized Tractors): Not Permitted
- Tractors: Not Permitted
- Trucks / Tippers / Dumpers and spares thereof including Tyres: Permitted only to mining sector
- Motor Cars, Sports utility Vehicle / All purpose vehicles: Not Permitted
- Airport Ground Handling Equipments: Not Permitted
- Furniture, carpets, crockery, marble, chandelier, tiles, flooring, doors for rooms, fixing panels: Permitted only to Hotel Industry
- Construction equipment viz. Cranes etc.: Permitted only for providing services
- All construction material like sheds, cement, steel: Not Permitted
- Computer and Printers: Not Permitted
- All seconds Hand Capital Goods: Not Permitted
- Capital Goods (including Captive plants and Power Generator Sets of any kind) for export of electrical energy: Not Permitted
- Pre-fabricated Polyurethane Foam (PUF) : Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Processing Units for storage of prefrozen and frozen marine products respectively, meant for exports under the EPCG Scheme
- Furniture and fixtures, flooring materials and furnishing materials : Not Permitted
- Pre-fabricated Polyurethane Foam (PUF) panels/doors : Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Units for storage of fresh fruits and vegetables, meant for exports under the EPCG Scheme
How Prohibited Goods Impact Importers and Exporters
Importing prohibited items under the EPCG scheme can have severe consequences for a business. Failure to comply with the restrictions may result in fines, penalties or even revocation of the EPCG license if contraband is imported.
Customs authorities will seize those goods. Cause delays There is an additional cost. And there may be disruptions in business operations. The legal and financial implications can cause significant failure.
This is especially true if the business does not adhere to the guidelines set by the DGFT and other regulatory agencies.
Additionally, importing prohibited products can have a negative impact on a company’s reputation. Collection of sensitive items such as military equipment or hazardous materials may draw negative attention from officials and business partners. Compliance violations can also damage relationships with customs authorities.
This makes future business difficult. For exporters who rely on EPCG benefits, this may result in license suspension or loss of privileges—affecting growth and market access in the long term.
How Curated Exim Consultants Can Help
Navigating the complexities of an EPCG project and understanding the list of prohibited items can be a challenging task. This is where Curated Exim Consultants can provide valuable assistance. Our team of experts helps businesses comply with India’s trade policies.
To ensure that imported or exported products are not classified as prohibited. With a deep understanding of foreign trade policy and expertise in DGFT regulations, we can guide your company through the nuances of EPCG planning, reducing the risk of costly errors.
Whether you want to import capital goods under the EPCG scheme or need help determining whether your product is banned, Curated Exim consultants can help ensure your business is on the right track.
We provide expert advice, regulation updates, and a comprehensive understanding of import and export regulations in India.
