EPCG EXPORT OBLIGATION PERIOD EXTENSION

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S. RAVICHANDRAN (Querist)
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07 February 2021 SIRS
ONE OF OUR CLIENT IMPORTED CAPITAL GOODS UNDER EPCG SCHEME. DUE TO GLOBAL ECONOMIC CRISIS AND COVID PANDEMIC, UNABLE TO ACHIEVE THE EXPORT TURNOVER AS REQUIRED FOR EXPORT OBLIGATION FULFILLMENT WITHIN THE PERIOD SPECIFIED IN THE EPCG LICENCE. THE EXPORT OBLIGATION PERIOD IS 6 YEARS. PLEASE LET ME KNOW EXTENSION OF THE PERIOD FURTHER MORE YEARS TO FULFILL THE EXPORT OBLIGATION AND HOW TO APPLY THE SAME WITH DGFT AUTHORITIES.
REGARDS
S. RAVICHANDRAN

Asha Kanta Sharma

Asha Kanta Sharma

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06 July 2024 To seek an extension for fulfilling the export obligation under the EPCG (Export Promotion Capital Goods) scheme due to circumstances like the global economic crisis and COVID-19 pandemic, you can follow these steps to apply for an extension with the DGFT (Directorate General of Foreign Trade) authorities:

1. **Review EPCG Scheme Guidelines**: Begin by reviewing the specific guidelines and terms mentioned in the EPCG scheme under which the capital goods were imported. Pay particular attention to the sections related to export obligations, extensions, and force majeure circumstances.

2. **Prepare a Request Letter**: Draft a formal request letter addressed to the concerned DGFT regional authority. The letter should include:
- Details of the EPCG licence (licence number, date of issue, etc.).
- Reasons for seeking an extension (e.g., global economic crisis, COVID-19 pandemic impact on export activities).
- Explanation of efforts made to fulfill the export obligations despite challenges.
- Proposed extension period required.

3. **Supporting Documents**: Gather supporting documents that substantiate your request, such as:
- Financial statements showing the impact of economic conditions on export performance.
- COVID-19 related disruptions in export operations (if applicable).
- Correspondence with buyers/customers regarding delayed orders or cancellations.
- Any other relevant documents demonstrating efforts to mitigate the impact and fulfill obligations.

4. **Application Submission**: Submit the request letter along with supporting documents to the regional DGFT office where the EPCG licence was issued. Ensure that all documents are complete and accurately reflect the situation.

**Follow-Up and Response**: After submission, follow up with the DGFT office to track the progress of your application. They may require additional information or clarification during the review process.

**Compliance and Communication**: Throughout the extension request process, maintain communication with DGFT officials and comply with any requests or inquiries promptly. This helps in expediting the decision-making process.

**Decision and Conditions**: If approved, DGFT will issue an order specifying the extended period for fulfilling the export obligations. Ensure compliance with the new deadline and any conditions mentioned in the approval order.

**Legal Advice (if necessary)**: If the situation is complex or if you face challenges in obtaining an extension, consider seeking legal advice from a trade consultant or legal expert specializing in DGFT matters.

By following these steps and providing comprehensive documentation, you can enhance your chances of obtaining an extension for fulfilling the export obligation under the EPCG scheme, considering the exceptional circumstances faced.