Export Promotion of Capital goods

[Raja krishnan]

Sir,

A job worker furnished finished goods and supplied to other party and the other party sent the same to another Trader and the same finished goods send to Exports by the Trader. In this position my doubt is, for this transaction the above job worker applicable to take export obligation for their EPCG. Kindly clarify along with some Rules.

[Mahir S]

Sir,

An EPCG authorization holder can export either directly or through third party(ies).

However, from the transaction followed in your query, the job worker shall not be applicable to take export obligation benefit under EPCG.

AI Summary

EPCG export entitlement: job workers cannot claim export obligation benefits when another party effects the export. An EPCG authorization holder may export directly or through third parties; where a job worker supplies finished goods that are exported by another trader, the job worker cannot claim export obligation benefits under EPCG because the export is effected by a different party.