EPCG EXPORT OBLIGATION

[ZULFIKAR VOHRA]

Dear experts,

we intend to obtain EPCG license for import machinery.

export obligation calculated on export made from new machinery imported against EPCG or can be calculated on goods manufactured from other machinery (which is not imported in EPCG license).

Zulfikar B. Vohra

[Kishan Barai]

EO shall be fulfilled by the EPCG authorisation holder through export of goods which are manufactured by his machinery imported duty-free under EPCG. Moreover, if products fall on the same range than it could not be any issue but as per law it has to done from EPCG machine imported only.

[Guest]

There should be nexus. If both machinery producing identical products(entirely same in nature), you can follow second option.

AI Summary

EPCG export obligation: exports must derive from goods made on duty free EPCG machinery or have a clear nexus. The EPCG export obligation must be fulfilled by exports of goods manufactured by machinery imported duty free under EPCG; a demonstrable nexus may permit exports from other machinery only where that machinery produces entirely identical products and the connection to the EPCG imports is clear.