Epcg export obligation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2016 Hi

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.

Thanks

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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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.

Thanks

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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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.

kindly read this.