EXPORT OBLIGATION FULFILL MENT (EO)

[SNEHAL SHAH]

Sir,

We had purchase all New machinery under EPCG Scheme , now some guideline require from you that due to some less export oreder received last 1 1/2 Years due to some internation market competition , we are unable to fulfillment export obligation .

Now quetion is that 3 to 4 Machinery purchase under 3% & 5% Concession rate of duty under EPCG & there is one or two months pending for completion of block period ( 8 Years to be completion on oct-2011 ) is it we apply for extenton for EO fulfillment ?

Please guide to us

sachin

 

AI Summary

Export obligation extension: pay a composition fee or increase export commitment to obtain additional time under EPCG rules.
An initial extension of export obligation under the EPCG scheme can be obtained for up to two years by either paying a composition fee of 2% of the proportionate duty saved on the unfulfilled obligation or by enhancing the total export obligation by 10% for each year extended; further extension beyond the block plus this period may be allowed subject to payment of 50% of duty proportionate to the unfulfilled obligation.