Export obligation fulfillment under epcg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2013 Respected Experts,

2 numbers EPCG Licences issued in 2006-07
1st Licence on 15-09-2006 duty saved 3.0 crore, 2nd Licence on 20-09-2006 duty saved 2.0 crore. Annual Average export obligation imposed 6.25 crore (mentioned in both the licences)
My query is as follows sir :

1. Does the counting of export obligation of 8 years starts from the time of import of capital goods (From the date of bill of entry)or from the date of epcg licence

2. Should we maintain annual average through out the period of eight years time

3. Is Annual average cumulative. we have to make export of 6.25 crore for 1st licence and another 6.25 crore for 2nd licence every year

4. epcg licence holder has to submit to RA by 30th April of every year, report on progress made in fulfillment of export obligation against the licence as well as annual average achieved by electronically on DGFT website - where exactly this link is located on DGFT website, any help link is available. Or we have to submit any hard copy of formats available on DGFT website.

5. epcg licence holder has to submit statement of export within three months from the expiry of block year duly certified by chartered accountant and bank to regional authority - any stipulated formats available

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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03 May 2013 Upto 50% Export Obligation is permitted to be fulfilled by exports of other good(s) manufactured or
service(s) provided by the same firm / company, or group company / managed hotel, which has the EPCG authorization. Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG.

Authorization holder is required to submit to RA concerned by 30th April of every year, report on
fulfillment of export obligation.

Export Obligation under EPCG scheme is required to be fulfilled by export of goods anufactured/services rendered by the applicant. Export obligation under the scheme is over and above, the average level of exports achieved by the authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any. Such average would be the arithmetic mean of export performance in the last three years for the same and similar products. The Authorization holder under the EPCG scheme shall fulfill a minimum of 50% export obligation in each block of years as may be specified.