TaxTMI 
TaxTMI 
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.
EPCG Benifit
05 Sep 2018 
2 Replies 
1031 Views Asked by
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. (AI Summary)
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. (AI Summary)