Maintain of Average Export for EPCG Scheme

[Sambhav Jain]

Respected Experts,

(A) My first query is that why is it important for exporter to maintain Average export for redemption of EPCG license?

(B) My another query is that if it is a new company and opt for the third party Export obligation to export the goods

And he never exports the product then why it is not important for that company to maintain Average export

The new company is not even exporting not even maintaining average export then also getting export obligation fulfilled by the help of third party export?

[YAGAY andSUN]

For old companies who are exporting regularly are required to maintain the Average Export for redemption of EPCG License over and above their normal exports.so that export against new allotted epcg should not be disturbed or merged with the normal export obligation etc.

Since new companies had never before exported there fore on them Average Export clause is not applicable.

AI Summary

Average export requirement protects existing export performance so EPCG redemption does not dilute regular exports; new exporters exempt. Established exporters must maintain the average export requirement when redeeming an EPCG licence so that obligations under the new EPCG allotment do not disturb or merge with their normal exports; the average export clause is not applicable to new companies lacking prior export history, which may discharge EPCG obligations through third party exports.