Dear Experts,
One manufacturing unit import of paper cutting machine under EPCG procedure. Now they will be decide to complete their export obligation from their sister concern of drilling machinery manufacturing & export unit. my doubt is whether it is correct one. Please given your reply along with related notification, circular and public notice if any.
Manufacturing unit can fulfill 50% of export obligation via sister concern under EPCG scheme, despite different products. A manufacturing unit imported a paper cutting machine under the EPCG scheme and plans to fulfill its export obligation through its sister concern, a drilling machinery export unit. Experts in the forum clarify that up to 50% of the export obligation can be fulfilled through a sister concern, even if the products differ. However, the remaining obligation must be completed by the original unit. References to relevant policies, such as FTP 2015-2020 and FTP 2009-2014, are discussed, but there is some confusion over the specific conditions and provisions applicable to this situation. (AI Summary)
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