EPCG Export Obligation fulfillment

[VIjay Lagad]

We have imported Water jet cutting machine Under EPCG Scheme. Now we are doing profile cutting on this machine and fabricating Control panels for one of the Portugal based joint venture company at Noida,UP. Now they are exporting the finished product to their parent company at Portugal from our premises against Form CT1 and act as a merchant exporter. In this case shall we be able to apply for Export obligation fulfillment? What are the documents are required. They will not provide us copy of their Shipping Bill. In this case shall we submit Form H & ARE1 as export proof to EPCG/DGFT? Please advice-Thanks Vijay Lagad.

[Snehal Kulkarni]

In our view, manufacturere cannt claim the export benefit if the export is done through the merchant exporter.

May please read the Para 5.7 and Para 8.2 of HBoP of FTP.

 

AI Summary

EPCG export obligation: manufacturer cannot claim fulfilment when exports occur through a merchant exporter from its premises. A manufacturer cannot claim EPCG export obligation fulfilment where the finished goods are exported by a merchant exporter from the manufacturer's premises; exports effected through a merchant exporter do not qualify as fulfilment by the producer. The reply refers to the Handbook of Procedures provisions cited for governing interpretation and procedural requirements.