Export of group company - fulfillment of Average Export Export Obligation

[PRAVIN BHANDARI]

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.

AI Summary

EPCG License Holder Queries Export Obligation Fulfillment Under Notification No. 97/2004; Group Exports Clarified A manufacturing exporter with an EPCG license queried whether exports by a group company could fulfill the Average Export Obligation under Custom Notification No. 64/2008. One respondent advised consulting paragraph 5.5 of the FTP's EPCG Scheme. Another clarified that the relevant notification was No. 97/2004 before amendment, not 64/2008, and explained that while exports by other group companies cannot count towards the export obligation of the license-holding company, the group company can export goods manufactured by others in the group to meet obligations, provided they have EPCG authorization under the new FTP.