EPCG Export Obligation fulfilment

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vishal (Querist)
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01 June 2011 Dear Members,

We have taken EPCG licence in January against import of Machinery. Now I dont know the next steps which i have to take to fulfill the export obligation. I have following query:
1. when to submit machinery installation certificate its time period and issued by whom.
2. our export obligation in licence is Rs.13,50,000/- and we are doing deemed export. In that case how we fulfill the obligation.
3. documents needed at the time of export obligations.
4. On which documents we have to mention epcg licence number & date at the time of deemed export.
5. Is it possible to complete obligation it in a single order?

Please reply me as soon as possible.

Thanks & regards,
Vishal jani

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 June 2011 refer to Board’s Circular No. 25/2003, Board’s Circular Nos. 05/2010-Customs dated 16.03.2010 and Board’s Instructions dated 18.01.2011 issued vide F. No. 609/119/2010-DBK

The imported capital goods are to be installed in the importer’s factory or premises. The importer shall produce an Installation Certificate within six months from the date of completion of imports or within such extended period as the Assistant / Deputy Commissioner of Customs may allow. The Installation Certificate should be issued by the jurisdictional Assistant / Deputy Commissioner of Central Excise and should confirm installation and use of capital goods in the importer’s factory or premises. If the importer is not registered with central excise or if he is a service provider, he may produce a certificate of installation and usage issued by an independent chartered engineer.

In case the importer does not produce the requisite certificate within stipulated period, proceedings would be initiated for recovery of customs duty as applicable on such imports but for the exemption availed under EPCG scheme.

please noted that:-
Export Obligation performance for 1st Block: The importers under the EPCG Licence Scheme shall submit evidence of fulfillment of export obligation during 1st block within 30 days from the expiry of the 1st block period or such extended period, as the Assistant / Deputy Commissioner may allow. The importer shall produce following documents as evidence of their export performance.

(i) Original EPCG Licence

(ii) Duty debit sheets in original

(iii) Self attested copies of Shipping Bills & export invoices along with a statement showing shipping bill wise details, particularly FOB amount.

(iv) Bank Realization Certificates

(v) Export Statement as prescribed in Public Notice No. 106/2010 dated 21.10.2010.

(vi) Any other documents required by Group AC.

In the event of failure to produce evidence of export obligation performance by the importer within stipulated period (including the further period that may be allowed by the Assistant/Deputy Commissioner), the importer shall be liable to pay duty in the manner as prescribed in the exemption notification, failing which proceedings would be initiated for recovery of customs duty, as applicable to the imports but for the concession under EPCG scheme.

After completion of Export Obligation, the importer needs to submit only EODC, original license and duty debit sheet. The Monitoring Cell shall not ask for any other documents in normal course and the Bond / BG shall be cancelled on the basis of EODC, original license and duty debit sheet. Details of Shipping Bills and BRC etc. shall not be insisted upon. However, Department would retain the right to carry out a complete verification wherever there is a specific intelligence available suggesting mis-use.

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