TaxTMI 
TaxTMI 
Dear Experts,
Please suggest what are consequences and what are remedies if Average Export Obligation could note be maintained under EPCG
Thanks..
Average Export Obligation not maitained under EPCG
12 Jan 2017 
15 Replies 
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Average Export Obligation: failing the annual EPCG requirement can trigger duty repayment, interest and penalties.
Failure to maintain the average export obligation under an EPCG authorisation may require repayment of the duty saved, plus interest and penalties. Block wise fulfilment (50% in first block, balance later) applies to specific export obligations only; the annual average fixed by DGFT must be met year on year. Remedies include refixation of the annual average via CA certificate where prior EPCG exports were wrongly counted, seeking relief for sectoral export decline, and representations to the Regional Authority/DGFT. (AI Summary)
Failure to maintain the average export obligation under an EPCG authorisation may require repayment of the duty saved, plus interest and penalties. Block wise fulfilment (50% in first block, balance later) applies to specific export obligations only; the annual average fixed by DGFT must be met year on year. Remedies include refixation of the annual average via CA certificate where prior EPCG exports were wrongly counted, seeking relief for sectoral export decline, and representations to the Regional Authority/DGFT. (AI Summary)