EPCG OBLIGATION THROUGH THIRD PARY

[satbir singhwahi]

Sir

The dyeing unit has imported machines under EPCG . Now for completion of export obligation through third party , for whom it does job work of dyeing and finishing of cloth. The third party is exporting garments made from cloth dyed and finished by dyeing unit.The DGFT is not accepting this procedure. Kindly guide how the dyeing unit doing only job work complete the export obligation through third party.

[Suryanarayana Sathineni]

Dear Friend,

In this situation, the best alternative is to include the third party name as supporting manufacturer in the said EPCG Authorization so that for exporting the goods towards fulfilment of export obligation from the third party will be acceptable without any objection.

Best Regards

Suryanarayana

AI Summary

Dyeing Unit Seeks EPCG Export Obligation Fulfillment via Third Party; DGFT Requires Third Party as Supporting Manufacturer A dyeing unit imported machines under the Export Promotion Capital Goods (EPCG) scheme and seeks to fulfill its export obligation through a third party for whom it performs dyeing and finishing. The third party exports garments made from the processed cloth, but the Directorate General of Foreign Trade (DGFT) does not accept this method. The suggested solution is to include the third party as a supporting manufacturer in the EPCG Authorization, allowing the export obligation to be fulfilled without objections.