12 November 2009
Dear experts, We are a battery manufacturing Unit. Registered with Excise and Customs. We have imported a battery manufacturing machinery against EPCG licence. As per EPCG licence export obligation should cover with in 8 years and the proportion of obligation is for 1st and 2nd year NIL, 3rd and 4th year 15%, 5th & 6th year 35% and balance 7th and 8th year 50%. But due to huge demand we have completed obligation in 2nd year. Now my question is wheather we are elegible to get redumption letter from customs or we have to follow above % properly. Kindly inform me with Notification No. Thanks and regards, R.Dutta
I just wanted to draw your attention towards average export performance you have to maintain every year till expiry of Export obligation period i.e. 8 years. Your export onbligation every year will be counted as under.
Your exports during a year, less Average export performance you have to maintain every year.
Average Export performance is always mentioned on condition sheet of EPCG licence. In short your export obligation will be over and above your average export performance.
You may complete export obligaton before the stipulated time or structure but as per my opinion you need to wait untill expiry of E.O. period and prove that you have also maintained average export performace every year during the period of 8 years. JYOTINDRA THAKAR
CAclubindia
