Export obligation under epcg

Dear Experts,

One manufacturing unit import of paper cutting machine under EPCG procedure. Now they will be decide to complete their export obligation from their sister concern of drilling machinery manufacturing & export unit. my doubt is whether it is correct one. Please given your reply along with related notification, circular and public notice if any.

Replies (3)
Refer to chapter 5 of FTP. EO to be completed and shipping bills to be submitted as evidence of export to the RDGFT. Please take a note that address of the factory in the EPCG license and Shipping bills should be the same to prove the exports made. Either amend the epcg license with your sister concern as supporting manufacture or while exporting incorporate your IEC in the shipping bills of your sistern concern to give the effect of third party export.

Dear Sir,

Thanks for your immediate action in this regad. but my doubt is based on the commodity, because both are different commdities. Import machinery is Paper cutting but the export obligation complted by drilling machinery export. whether it is correct one.

Yes. If the machinery is technically required to produce the product, then you can

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