EO agst EPCG & Advance License

[deepak kalambate]

Dear Sir,

 

Pl. let me know whether export made against EPCG license can be counted towards fulfilment of export obligation for Advance License simultaneously.


[YAGAY andSUN]

Yes, it it allowed.

To encourage value added manufacture export, a minimum 15% value addition on imported inputs under Advance Authorisation Scheme has been stipulated.Shipments under Advance Authorization, DFRC, DFIA,or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation.

This is for your kind information.

Regards,

Pradeep Khatri

 

[deepak kalambate]

thanks a lot for your immediate reply !

[deepak kalambate]

As DGFT is giving seperate EO for both EPCG & Advance license at the time of issuing license then how the single shipping bill is prepared for both i.e. for EPCG & Advance License.

In other words if I exported goods worth Rs.10 Lacs, then i have fulfilled EO of Rs.10 Lacs against EPCG and also of Rs.10 Lacs against Advance License?

Pl advise.

[Rahul Sonawane]

You can file the shipping bill under scheme code of Advance + EPCG Lic, you just give instructions to your CHA , he will do it.

[sundar raman]

for advance licence the EO based on quantity imported to be exported where as for EPCG EO based on value.  single shipping bill can be fulfilled for both advance and epcg licences.

AI Summary

Export obligation crediting: exports can satisfy EPCG and Advance Licence obligations concurrently when declared under proper scheme codes. Exports declared under the appropriate scheme codes on the shipping bill can be credited simultaneously to fulfill EPCG and Advance Licence export obligations. Advance Authorization mandates a minimum 15% value addition on imported inputs; Advance Licence obligations are quantity based and EPCG obligations are value based. DGFT issues separate obligations, but a single shipping bill filed with combined scheme codes can discharge both obligations when properly instructed to the CHA.