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.
Can manufacturers fulfill EPCG export obligations using Form H and ARE1 without shipping bills through merchant exporters? An individual inquired about fulfilling the Export Promotion Capital Goods (EPCG) export obligation after importing a water jet cutting machine. They are fabricating control panels for a Portugal-based joint venture and exporting the finished product to Portugal through a merchant exporter. The individual asked if they could apply for export obligation fulfillment without the shipping bill and whether Form H and ARE1 could serve as export proof. The response indicated that manufacturers cannot claim export benefits if the export is conducted through a merchant exporter, referencing specific provisions in the Handbook of Procedures of the Foreign Trade Policy. (AI Summary)
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