EPCG scheme compliance requires bonds and bank guarantees to secure duty exemptions until export obligations are discharged. Procedure prescribes registration, security and closure formalities for the EPCG scheme: licence registration requires original licence, prescribed bond and applicable Bank Guarantee or Corporate Guarantee; bonds must cover duty ordinarily leviable and interest, with BG norms and possible reduced BG on certified export performance or specified registration proof. Installation of imported capital goods must be certified by Central Excise or an independent chartered engineer. After fulfillment of export obligation, exporter must obtain EODC and apply with specified documents for cancellation of Bond/LUT and BG, upon which customs will cancel and return security.
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EPCG scheme compliance requires bonds and bank guarantees to secure duty exemptions until export obligations are discharged.
Procedure prescribes registration, security and closure formalities for the EPCG scheme: licence registration requires original licence, prescribed bond and applicable Bank Guarantee or Corporate Guarantee; bonds must cover duty ordinarily leviable and interest, with BG norms and possible reduced BG on certified export performance or specified registration proof. Installation of imported capital goods must be certified by Central Excise or an independent chartered engineer. After fulfillment of export obligation, exporter must obtain EODC and apply with specified documents for cancellation of Bond/LUT and BG, upon which customs will cancel and return security.
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