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.

AI Summary

Company Seeks Clarification on EPCG Penalties and Export Obligations for Molding Machines Purchased in 2006-2007 A company inquired about penalties for not meeting export obligations under the EPCG scheme after purchasing molding machines in 2006 and 2007. They sought clarification on penalty rates, which reportedly increased from 15% to 18% for the first year, and the minimum export obligations per block year. The company also asked about submitting reports to the DGFT's Regional Authority (RA) and obtaining permission to shift a molding machine to another company for job work. They plan to start manufacturing and export to an EOU to meet obligations within five years. A respondent requested their email for further communication.