epcg obligation

[satbir singhwahi]

pary has imported knitting machines under EPCG.NOW IT IS FULFILLING EXPORT OBLIGATION THROUGH THIRD PARTY, THE THIRD PARTY IS EXPORTING WOVEN GARMENTS BY MENTIONING THE EPCG NO. OF US UNDER WHICH KNITTING MACHINERY WAS IMPORTED.WHETHER EXPORT OBLIGATION CAN BE FULFILLED BY EXPORTING PRODUCT THAT IS NOT MANUFACTURED ON IMPORTED MACHINE UNDER EPCG.

AI Summary

Can Export Obligations Be Fulfilled Using Third-Party Goods Not Made on Imported EPCG Machinery? Legal Concerns Raised. A party imported knitting machines under the EPCG scheme and is attempting to fulfill its export obligation through a third party exporting woven garments, using the EPCG number associated with the machinery. The question raised is whether the export obligation can be met by exporting products not manufactured on the imported machines. The response highlights a potential issue, noting that EPCG conditions require actual use of the imported machinery until the export obligation is fulfilled. This situation may lead to difficulties, as there is no provision under the Foreign Trade Policy allowing such an arrangement.