Average export under EPCG Scheme

[kamal chordia]

Kindly confirm below is the correct way to workout average export performance under EPCG Scheme

WITH REFERENCE TO DGFT CIRCULAR NO 28/07 DT 22.01.08

TOTAL EXPORT - AVERAGE MAINTAINED - ADDITONAL MADE  BUT LICENCE NOT  REDEEMED= ADDITONAL EXPORT OBLIGATION MADE AND LICENCE IS REDEEMED

OR

WE CAN SAY THE AVERAGE EXPORT  IS ARITHMATIC MEAN OF  ADDITONAL EXPORT OBLIGATION UNDER EPCG LICENCES WHICH WERE REDEEMED IN PRECEEDING 3 LICENCING YEAR.

Kindly check and revert

Thanks & regards

KAMAL

[kamal chordia]

Dear Sir

Please note as under

[1] Our export of last three year was 20, 25, 15 crore respectively.

[2] The Additional Export obligation made under EPCG Licence which were  redeemed as  Rs 5,6,3 Crore Respectively.

[3] The additional export made but the licence is not redeemed as Rs 1,2.5, 1 Crore

 

Now my questation is that in abive case what would be the average export obligation.

 

Kindly check and revert

thanks & regards

Kamal

 

AI Summary

Average export calculation under EPCG scheme: whether to count only redeemed obligations or average past redeemed obligations. Calculation under the EPCG Scheme hinges on whether average export performance should exclude additional exports linked to licences not redeemed and instead be computed as the arithmetic mean of additional export obligations actually redeemed in the preceding three licensing years, as illustrated by a three year numerical example contrasting redeemed and non redeemed additional obligations.