EPCG Scheme- CBEC Instructions on New Policy / Procedure

Export obligation compliance requires bonds with bank guarantees and monitoring, with duty recovery for periodic shortfalls.

Importers under the EPCG Scheme must execute bonds with bank guarantees and meet prescribed export obligations year wise or block wise; failure to meet periodic minima results in recovery of proportionate duty foregone or, upon continued shortfall, liability for the entire duty foregone. The Commissioner of Customs where the licence is registered is responsible for monitoring compliance, maintaining registers and records, verifying that imported assemblies constitute complete capital goods, and ensuring exporters produce licencing authority certificates evidencing discharge of obligations.