EPCG Benifit

[satnam suthar]

Dear Sir,

If we are indian manufacturer and supplying directly to customer whose having EPCG Certificate benifit. In that case can we provide him EPCG benifit.

[Yash Jain]

Dear Sir,

No. The customer as per rules should export goods from machine procured under epcg. Customer cannot engage into merchant trading.

Rgds

[BRIJMOHAN GOYAL]

Dear Sir,

If your Customer is having EPCG Licence and you are the manufacturer and supplying the machine to him as domestic supply but you are importing Raw Material /Components , then you can take import benefits on input.

Your customer will issue invalidation letter to you , on the basis of invalidation letter , you can take Advance Licence for duty free imports.

AI Summary

EPCG benefit cannot be transferred by merchant supply; invalidation letter may permit supplier to claim input import concessions. EPCG benefits are tied to the licence-holder's use of imported capital goods for export production and cannot be obtained by merchant trading; a purchaser cannot transfer EPCG entitlement via a supplier. If a manufacturer imports inputs/components and supplies domestically to an EPCG licence-holder, the licence-holder may issue an invalidation letter enabling the manufacturer to claim import benefits and apply for an Advance Licence for duty-free input imports.