TaxTMI 
TaxTMI 
We are mfg. Exporter and issued Certain EPCG Licence by D.G.F.T., endorsed with Average Export Obligation of Rs. 129 crore per year. We would like to draw your attention towards Custom Notification No. 64/2008. The extract of said notificatin is as under: "Provided further that in respect of Group Company as defined in paragraph 9.28 of the Foreign Trade policy where license has been issued to any one of such Group Company, the export obligation may also be fulfilled by export of manufactured goods by any other company(s) belonging to such Group Company" It is clear that specific export obligation of EPCG licence (i.e. 8 times of duty saved amount) can be fulfilled by Group Company. Let us know, whether the Export of Group company can be count in fulfillment of Average Export Export Obligation.
Export of group company - fulfillment of Average Export Export Obligation
05 Dec 2009 
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Group company exports may satisfy EPCG average export obligation when compliant with FTP provisions and scheme conditions.
The EPCG scheme permits fulfilment of an Average Export Obligation through exports by companies within the group, governed by para 5.5 of Chapter 5 of the Foreign Trade Policy and by the applicable notification; other group companies' participation is subject to the FTP conditions and, under the updated framework, may require their own EPCG authorization or compliance with scheme provisions. (AI Summary)
The EPCG scheme permits fulfilment of an Average Export Obligation through exports by companies within the group, governed by para 5.5 of Chapter 5 of the Foreign Trade Policy and by the applicable notification; other group companies' participation is subject to the FTP conditions and, under the updated framework, may require their own EPCG authorization or compliance with scheme provisions. (AI Summary)
