Export Obligation under EPCG License

[Raja krishnan]

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.

AI Summary

EPCG export obligation: partial fulfillment by sister concerns permitted, with remaining obligation required to be met by the licensee.
EPCG export obligation must be fulfilled over and above the applicant's average exports in preceding licensing years. Up to a limited portion of the obligation may be fulfilled by exports of other goods or services supplied by the same firm, group company or sister concern, but such substitute exports are counted against the additional obligation which remains measured over the applicant's historical average; documentary proof such as endorsement of the EPCG number on shipping bills is required.