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EPCG Delays: The Hidden Bottleneck After Licence Approval
In many EPCG cases, the assumption is simple: once the licence is issued, imports can proceed smoothly.
Reality is different.
Where the importer is not eligible for exemption, Bank Guarantee (BG) becomes mandatory. And that is where execution challenges begin.
What appears as a routine compliance step quickly turns into a coordination exercise:
• BG issuance moves internally within the bank , Branch to Regional Office to Head Office
• Post execution, Customs insists on independent confirmation from the bank
• The confirmation must be in a specific format acceptable to Customs
• Banks, especially at HQ level, often respond in standard formats not aligned with Customs expectations
• This leads to queries from Customs
• The local branch then re-engages to correct or reissue communication
The result?
A delay of 4 to 5 days, even when the importer is fully ready and compliant.
The Real Insight
EPCG delays are not always about policy or eligibility.
They are increasingly about:
• Format mismatches
• Banking response time
• Last-mile coordination between institutions
Practical Takeaway for Importers
Do not treat EPCG licence issuance as the finish line.
If BG is involved:
• Pre-align with your bank on Customs-required confirmation format
• Ensure HQ responsiveness and format compliance
• Factor in execution time, not just approval time
Closing Thought
In EPCG, approvals may be digital and fast.
Execution is still human and that is where time is lost.
In many EPCG cases, the assumption is simple: once the licence is issued, imports can proceed smoothly.
Reality is different.
Where the importer is not eligible for exemption, Bank Guarantee (BG) becomes mandatory. And that is where execution challenges begin.
What appears as a routine compliance step quickly turns into a coordination exercise:
• BG issuance moves internally within the bank , Branch to Regional Office to Head Office
• Post execution, Customs insists on independent confirmation from the bank
• The confirmation must be in a specific format acceptable to Customs
• Banks, especially at HQ level, often respond in standard formats not aligned with Customs expectations
• This leads to queries from Customs
• The local branch then re-engages to correct or reissue communication
The result?
A delay of 4 to 5 days, even when the importer is fully ready and compliant.
The Real Insight
EPCG delays are not always about policy or eligibility.
They are increasingly about:
• Format mismatches
• Banking response time
• Last-mile coordination between institutions
Practical Takeaway for Importers
Do not treat EPCG licence issuance as the finish line.
If BG is involved:
• Pre-align with your bank on Customs-required confirmation format
• Ensure HQ responsiveness and format compliance
• Factor in execution time, not just approval time
Closing Thought
In EPCG, approvals may be digital and fast.
Execution is still human and that is where time is lost.
RR Padmanabhan – 9840055020
Jugal Kishore R Shah – 9940058201
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