Consequences in case of default in EPCG Scheme ?

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CourseCart.in (Querist)
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17 December 2010 Dear Experts !

What are the consequences in case the export could not b made by the person who takes the benefit of EPCG Scheme?

Need detailed information..

thanks

adarsh @ agrimatrix.in

shayvidz @ gmail.com

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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18 December 2010 Differential custom duty +15% penalty.

CourseCart.in

CourseCart.in (Querist)
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18 December 2010 Thanks for the reply Mr. Bhagat !

can you please give me the reference of these levy ? 15% interest or 15% penalty? Per annum or what? & when it is required to be paid (i.e. whether after completion of 8yrs?) ?

are you sure that no other action will be taken like confiscation of Capital Goods etc. ?

here is a forum discussion too..
https://www.caclubindia.com/forum/consequences-in-case-of-default-in-epcg-scheme--117240.asp

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 December 2010 dear sir,

agree with shri bhagat G,

please refer to para 5.14 of foreign trade policy ,2002-07

"In case, EPCG licence holder fails to fulfil prescribed export obligation, he shall pay duties of Customs plus 15% interest per annum to the Customs autohrty"

LINK IS :- https://dgftcom.nic.in/exim/2000/procedures/bchap-5.htm

and also para 5.5.2 of the ftp 2010-11, verify its.

Regards,

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 December 2010 for more information you must read :-

CUSTOM NOTIFICATION NO. 49/2000 DATE 27/04/2000.

REGARDS,

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