EPCG Shortfall of duty

[Rahul Sonawane]

Dear Sirs,

Our shipment is under EPCG clearance, but due to fluctuation in exchange rate we have a short fall of duty amount in EPCG License even after considering the 10% enhancement in duty save amount.

Except these options - 1) Amendment in EPCG License for enhancement of duty , 2) Payment of excess duty to Customs. 

Is there any other option ?. for eg. Executing of Bank Guarantee with Customs for the excess duty amount, or any thing else

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

EPCG duty shortfall: explore amendment, duty payment or security options to address exchange-rate driven shortfall. EPCG duty shortfall due to exchange-rate fluctuation leaves the exporter unable to meet the licensed duty-saved amount; identified remedies are amendment of the EPCG licence to enhance the duty-saved limit or payment of excess duty to Customs. The inquiry asks whether alternate mechanisms, such as furnishing a bank guarantee or other securities, may be acceptable to regularize the shortfall, noting no definitive regulatory resolution in the text.