Annual Average of Past Export performance

[Mohammed Idrees]

Dear Experts,

I would like seek help for an EPCG issue as explained below:

We have obtained an EPCG Authorization under Concessional Duty 3% in 2011 (Duty Saved value ₹ 20,22,699) and completed our Export Obligation for the Fixed EO (Rs.1,61,81,592) during the year 2016-2017 thru Third Party Exports as we had no direct export orders and had to opt for 3rd Party Exports. We have complied with the conditions as per PARA 5.10(d)2015-20 but we are not able to maintain the Annual Average of past export performance for the same (past 3 years export performance). The Annual Average of Export performance is ₹ 28,17,820 /-

How do we regularize the same and what would be the duty towards the non fulfillment of AA Export performance ?

AI Summary

EPCG Authorization 2011: Query on unmet annual export performance from 2016-2017, compounding fees advised per FTP guidelines. A query was raised regarding an EPCG Authorization obtained in 2011 under a concessional duty, with the export obligation met through third-party exports by 2016-2017. The issue concerns the inability to maintain the required Annual Average export performance over the past three years, set at 28,17,820. Responses suggested paying compounding fees as per the FTP guidelines and highlighted the need to consider the export performance of the preceding three years, ensuring exports are under the correct IEC, and meeting value addition and export obligations as stipulated.