EXPORT OBLIGATION UNDER EPCG

[AJAY KUMAR]

I got an EPCG licence showing following export obligations:

(a) Average Export Obligation - USD 2295643.00

(b) Previous Export Obligation - USD 114470.05

(c) Additional Export Obligation - USD 849983.00

The licence has been issued to me on 2014 . till date I have exported - USD 1919837.00

whether I have fulfilled the EO?

[Spudarjunan S]

Dear Sir,

For verifying whether the EO has been fulfilled or not, kindly verify the amount of duty saved through EPCG licence and calculate six times of such duty which is your export obligation. You need to achieve this obligation within prescribed time limit i.e. 6 years, over and above your Average Exports.(Average Exports would be the arithmetic mean of export performance in the preceding three licensing years for same and similar products.)

AI Summary

Export obligation under EPCG requires achieving six times the duty saved within six years beyond average exports. Export obligation under the EPCG scheme is computed as six times the customs duty saved under the licence and must be achieved within a six year compliance period, over and above the exporter's average exports, which is the arithmetic mean of exports in the three preceding licensing years for the same or similar products.