The characters in the XML document can be encoded in different formats. XML uses the Unicode (UTF-8 or UTF-16) character set by default, but other encodings can be used if they are declared in the XML declaration. at the beginning of the document.
In this screen of the template wizard, you can specify the encoding for the documents created with the template. Encodings can only be specified for XML documents; this screen of the template wizard will not appear if you are creating a template for an SGML document.

Choose an encoding from the drop-down list in the dialog of select
XML systems will assume that your document has been encoded with Unicode (UTF-8 or UTF-16) characters if no other encoding has been explicitly specified. epcEdit will store XML documents in the UTF-8 encoding if no other encoding has been specified in the XML declaration.
After selecting the dodument encoding, continue with the next screens of the template wizard by pressing the Next button
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