DGFT permit

[yujin kim]

Dear respected sir

We have purchased molding machine 2006 1 time, 2007 1 time through EPCG scheme.

it was 5% scheme.. we have paid 5%+2% duty.

If we didn't complete export obligation within 8years , 8times of total saved duty, how much is the panelty?

first year : saved duty + saved duty * 15%,

second year : saved duty + saved duty * 11%

I've heard continuesly panelty is decreased, and right now panelty is increased from 15% to 18% for first year, is it correct?

As per my knowledge, there is minimum export obiligation % as per block year.

1st to 2th	0%
3td and 4th	15%
5th and 6th	35%
7th and 8th	50%

In our company case, 3rd and 4th is passed. and 15% is not completed, then 15% of portion panelty have to be paid to DGFT?

Every 30th of Apr, do we have to submit RA?

What is RA?

Regarding machine shifting, do you know how we can get permissiton from DGFT?

We want to shift this molding machine to another company for job work,

currently, we are 100% job worker, but we will start our manufacturing soon, and have a plan to export to EOU so we can complete export obligation within 5years.

Please guide us for this matter.

[YAGAY andSUN]

Please provide us your e-mail id.

RA means Regional Authority of DGFT.

AI Summary

Export obligation penalties clarified - graded levies for non compliance and procedural queries on permissions and regional authority filings. Inquiry concerns penalties and compliance under the EPCG scheme for failure to meet export obligations: the enquirer queries the year by year penalty scaling on duty saved, the application of a block year minimum export obligation schedule and whether unpaid portions attract proportional penalties payable to DGFT. Procedural questions include periodic submissions to the Regional Authority and the process for obtaining DGFT permission to shift machinery acquired under EPCG to another entity for job work and completing obligations via exports through an EOU. The reply only defines RA as Regional Authority and seeks contact details.