The Export Promotion Capital Goods (EPCG) Licence issued to Manufacturer to import capital goods with 0% duty, but with conditions to fullfill the export obligation equivalent to 6(Six) times of duty saved of imports made within validity period, licence validity is 6 (Six) years to complete Import as well as Export Obligation.
 
While Import is made under this EPCG, the license holder(Manufacturer)has to execute the Bond with Custom authorities under Notification no.97/2004 Dt.17/9/2004 specifying the liability of duty saved amount and fullfilment of export obligation within stipulated time period failing which the duty liability will be liable for recovery.

This executed Bond has to be got cancelled with customs authorities after producing the Export Obligation  Discharge Certificate (EODC) issued by the licensing authorities.
 
The customs bond will remain active untill the EODC is not produced before them. The recovery process by customs will start  on completion of licence validity.