EPCG Compliance

As per my knowledge other complaiances are

1)he licence holder under the EPCG scheme shall fulfil the export obligation over the specified period in the following proportions: 

2)However, the export obligation of a particular block of year may be set off by the excess exports made in the preceding block of year.Where export obligation of any particular block of year is not fulfilled in terms of the above proportions, except in such cases where the export obligation prescribed for a particular block of years is extended by the competent authority, such licence holder shall, within 3 months from the expiry of the block of years, pay duties of customs plus 24% interest of an amount equal to that proportion of the duty leviable on the goods which bears the same proportion as the unfulfilled portion of the export obligation bears to the total export obligation.

The licence holder shall, if he fails to discharge a minimum of 25% of the export obligation prescribed for any particular block of two years for two consecutive blocks under EPCG scheme, be liable to pay forthwith, the whole of duties of customs plus 24% interest leviable on the goods imported except in such cases where the export obligation prescribed for a particular year or block of year is extended by the competent authority.

3)The licence holder , upon installation of capital goods in the factory, shall produce to the concerned Licencing Authority, a certificate to this effect by the jurisdictional Excise Authorities within 6 months of clearance of such goods from Customs. The licence holder shall submit to the licensing authority, report on the progress made in fulfillment of export obligation against the licence issued to him. The report shall be submitted in the form given in Appendix -10C. The periodicity of the report shall be yearwise. 

4)Every EPCG licence holder shall maintain for a period of 3 years from the date of redemption, a true and proper account of the exports/supplies made and services rendered towards fulfillment of export obligation under the scheme. 

thanks mr. naveen for giving the details regarding non fulfillment of EPCG export obligation, can you confirm 24% interest, where in the policy it has mentioned.

Regards

K.Ravi

 The licence holder , upon installation of capital goods in the factory, shall produce to the concerned Licencing Authority, a certificate to this effect by the jurisdictional Excise Authorities within 6 months of clearance of such goods from Customs. The licence holder shall submit to the licensing authority, report on the progress made in fulfillment of export obligation against the licence issued to him. The report shall be submitted in the form given in Appendix -10C. The periodicity of the report shall be yearwise. 

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Dear Sir,

we have taken EPCG licence on machinery import from china. now, we have fulfill export obligation 6 times of duty saved amount. We are now doing deemed export in india. My question is that on which documents we have to mention PCG licence number at the time of deemed export. and how to submitt those doc's in DGFT for export obligation.

Also adviced me , which documents i have to prepare for that procedure. Please advice me step by step if possible..

Thanks & regards,

vishal jani

for redemption :-

shipping bill copy of  EP,INVOICE, BILL OF LADING , (AWB) BRC AND FORMAT PRESCRIBED BY DGFT.