Average Export Obligation not maitained under EPCG

[Narendra Soni]

Dear Experts,

Please suggest what are consequences and what are remedies if Average Export Obligation could note be maintained under EPCG

Thanks..

AI Summary

Failing Average Export Obligation under EPCG: Repay Saved Duty, Possible Penalties, Interest; Remedies Include DGFT Contact, Documentation. A discussion on the consequences and remedies for failing to maintain the Average Export Obligation (AEO) under the Export Promotion Capital Goods (EPCG) scheme highlights several key points. If the export obligation is unmet, the saved duty must be repaid, potentially with penalties and interest. The obligation is typically fulfilled in two blocks: 50% in the first four years and the remainder in the following years. However, this block-wise fulfillment applies only to specific export obligations, not the average annual obligation, which must be met yearly. Remedies include contacting the local DGFT office and possibly refixing obligations through proper documentation.