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

Export obligation can be fulfilled by including the third party as supporting manufacturer in the EPCG authorization. A dyeing unit with machinery imported under an EPCG authorization wishes to complete its export obligation via a third party that exports garments made from cloth it dyes and finishes; DGFT has not accepted this. The advised solution is to include the third party as a supporting manufacturer in the EPCG Authorization so that exports by the third party will be acceptable for fulfilling the EPCG export obligation.