EPCG-DGFT matter

[Narendra Soni]

Dear Expert,

We issued one EPCG licence on April 2016. Average EO for last three year is calculated as 165 Cr., Specific EO is 30 Lac.Machinery importer and installed, installation certificate submitted to Jt.DGFT office , there after we fulfilled the Specific EO in this month, Average EO full filled till date is 103 Cr.

Being the average EO will be completed till March 2017, Should we apply for its redemption to Jt.DGFt or wait till march and apply for redemption after fulfillment of average EO.

Please suggest.

[MUKUND THAKKAR]

once your obligation is completed you can submitt for redemption to Jt.DGFT, without waiting till march..

[Ganeshan Kalyani]

To my knowledge both specific and average obligations to have completed for redemption .

[Narendra Soni]

Being the average EO is annual base, hence it can not be achieved in 4-6 months, it can only be achieved near about March, then should we hold the EPCG for redemption till March end ?

[YAGAY and SUN]

You may discuss it with your jurisdictional JDGFT in this regard as stated above both the EO are mandatory.

AI Summary

EPCG licence redemption requires completion of both specific and average export obligations before applying for redemption.
Redemption of an EPCG licence is contingent on completion of its export obligations: the specific export obligation has been discharged but the annual average export obligation remains incomplete and is expected to be fulfilled only by year end. Contributors disagree whether redemption can be applied for once a single obligation is completed or only after both specific and average export obligations are satisfied; consultation with the jurisdictional Jt. DGFT is advised.