EPCG licence query

[MAHENDRA SINGH RAJPUROHIT]

Dear sir,

We have old EPCG licence & by mistake we have all old epcg licence with more Average export than our past annual Production of company.

we have 14 EPCG licence with that type of problem. we have done export equlant to our licence export obligation and not fullfil  averege export obligation.

Please guide us.

[Snehal Kulkarni]

Good morning !

You have mentioned that you are holding the old EPCG lic. how much they old are ? Are the Lic issued prior to 2004 ( where EO=5 times if CIF Value ).

Average Export of past performance is not of the individual unit but it is of the gropu companies. Please check.

If Not so, then you are advised to approach to DGFT and get the Average Export Corrected. If required may please approach to EPCG commity.

As far As EO fulfilment is concern, the Export dones first counts toward the fulfilment of the Average Export then over and above the export made counts toward the EO Fulfilment.

If your average Export is INR 1000 and EO is INR 800, then the export made for the prescribed block first counts toward the fulfilment of the Average Export ( INR 1000) and over and above the average export ( INR 1000) will be counts towards fulfilment of EO ( INR 800 )

AS you are saying that you have done the export equivalent to the EO without fulfilment of the Avergae Export, then keep in the mind that the export is count towards the fulfilment of the Average Export Only.

Please check, out of 14 Lic, do some Lic are issued within the say year. If yes, then the you have to fulfill the AE for only One Lic ( which holds the highest Average Export ). Not need to fulfill the Average Export in all the lic.

Also the Export EO fulfilled can be clubbed with other Lic issued in the same FY.

Thanks

AI Summary

EPCG average export obligation: exports first satisfy average export, excess counts toward licence export obligation; seek DGFT correction. Average export for past performance is assessed at the group level; incorrect averages should be corrected with DGFT or the EPCG committee. Exports during the block period are applied first to meet the average export requirement, and only exports exceeding that average count toward the licence export obligation. If multiple licences were issued in the same year, the highest average export licence may be the only one requiring average export fulfilment, and export fulfilment can be clubbed across licences in the same financial year.