Can you please tell me whether Freight is included under Export obligation set up under EPCG schemes?
If i am exporting goods of USD 10,000 and Freight and Insurance of USD 10,000 , then for export obligation purposes would it be considered USD 10,000 or USD 20,000.
09 January 2016
kindly note that For the purpose of calculation of entitlement, commission for an item will be limited to 12.5% of the Net Realised value on CHAPTER -3 scheme only., on the EPCG schme NO freight including in Eo under the purview.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 January 2016
Hi Ramesh
Thanks for the explanation, an another question is that if we are taking license for a new industry with no previous exports then export obligation will be 6 times of duty saved and there wont be any average export obligation or is it mandatory to have prior export to get this license.
09 January 2016
Refer to DGFT Policy Circular No.04 Dated 16 /12/2015 There are Relief given by DGFT in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20.
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