Export Obligation – EPCG Scheme – DGFT amends policy
As per Paragraph 5.4(i) related to Export obligation under EPCG scheme,
Export obligation shall be fulfilled by export of goods, manufactured / services rendered by the applicant.
Export obligation shall be, over and above, the average level of exports achieved by applicant in preceding three licensing years. Such average would be the arithmetic mean of export performance in last 3 years.
Export obligation may also be fulfilled by exports of group company / managed hotel which has EPCG Authorisation. However, in such cases, additional export obligation imposed shall be over and above average exports achieved by unit / company / group company / managed hotel in preceding three years, despite exemption in Para 5.7.6 of HBP v1. For this purpose, average would be based on previous export of goods and services put together.
Now this is replaced with,
“Export obligation shall be fulfilled by export of goods manufactured / services rendered by the applicant.
Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any; except for categories mentioned in paragraph 5.7.6 of Handbook of Procedures, Vol. 1. Such average would be the arithmetic mean of export performance in last three years for the same and similar products.
Export obligation may also 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 authorisation.
However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s)/ service(s) despite exemption in Para 5.7.6 of HBP v1.
DGFT NOTIFICATION NO. 36 (RE-2007)/2004-2009, Dated: October 8, 2007