Epcg annual obligation

Maintaining the average export turn-over is one of the conditions under EPCG Scheme. This is calculated on the basis of export turn-over figures during the last 3 preceding years.

Fulfillment Of Export Obligation

The Authorisation holder under the EPCG scheme is required to fulfil the export obligation over the specified period in the following proportions:

Period from the date of issue of Authorisation        Minimum export obligation to be fulfilled

Block of 1^st to 6^th year                                                                                   50%

Block of 7^th and 8^th year                                                                               50%

In respect of Authorisations, on which the value of duty saved is Rs.100 Crore or more, the export obligation shall be fulfilled over a period of 12 years in the following proportion :-

Period from the date of issue of Authorisation     Minimum export obligation to be fulfilled

Block of 1^st to 10^th year                                                                                   50%

Block of 11^th and 12^th year                                                                               50%

You may also read  Para 5.4 & 5.5  and 5.9 of FT Policy 2009-14 which refers to “Maintenance of Average exports under EPCG”