18 November 2014
I work for a dairy industry. we have no exports. We imported furniture, a/c & other other interior material using EPCG license. What will be the impact. please tell me briefly about EPCG. Are we eligible to take EPCG license & what will happen when we will not export anything.
30 May 2015
EPCG LICENCE ISSUED BY THE DGFT BUT IT IS CONDITION YOU WILL EXPORT IS MANDATORY OTHERWISE YOU WILL BE PENALISED AND PENALTY IMPOSED AS PER FTDR ACT.
KINDLY NOTED
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REFER TO PARA 5.10 OF HAND BOOK OF PROCEDURES Conditions for fulfilment of Export Obligation --------------------------------- In addition to conditions in paragraph 5.04 of FTP, the following conditions shall also be applicable for fulfilment of export obligation: (a) Name of the supporting manufacturer as well as the exporter shall be indicated on export documents. (b) EPCG authorisation holder may export either directly or through third party(ies). (c) In case the Authorization Holder wants to export through a third party, export documents viz., shipping bills / Bill of exports etc. shall indicate name of both authorization holder and supporting manufacturer, if any, along with EPCG authorization number. BRC, GR declaration, export order and invoice should be in the name of third party exporter. The goods exported through third party should be manufactured by the EPCG Authorisation Holder or the supporting manufacturer where the capital goods imported under the authorisation have been installed.
PARA 5.14 OF HBPL 2015-2020 ****************************
The Authorisation holder under the EPCG scheme shall, while maintaining the average export obligation, fulfill the specific export obligation over the prescribed block period in the following proportions:
Period from the date of issue of Authorisation: Block of 1st to 4th year=50% MINIMUM EXPORT OBLIGATION FULFILLED.
Block of 5th and 6th year=50% MINIMUM EXPORT OBLIGATION FULFILLED.
PARA 5.14(A) "The Authorisation holder would intimate the Regional Authority on the fulfilment of the export obligation, as well as average exports, within three months of completion of the block, by secured electronic filing using digital signatures."
PARA 5.14(C)"(c) Where EO of the first block is not fulfilled in terms of the above proportions, except in cases where the EO prescribed for first block is extended by the Regional Authority subject to payment of composition fee of 2% on duty saved amount proportionate to unfulfilled portion of EO pertaining to the block, the Authorization holder shall, within 3 months from the expiry of the block, pay duties of customs (along with applicable interest as notified by DOR) proportionate to duty saved amount on total unfulfilled EO of the first block."
Further noted that Authorisation holder shall submit to RA concerned by 30th April of every year, report on fulfilment of export obligation by secured electronic filing using digital signatures. RA concerned may issue partial EO fulfilment certificate, provided export performance is proportionately adequate for fulfilment of export obligation.
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