Chapter 5 of the Handbook of Procedures - Volume-II provides procedure and conditions related to EPCG.

Paragraph 5.7.2 as amended by Public Notice No. 94 (RE-2007)/2004-2009 dated 1/1/2008 prescribes the conditions related to Foreign Exchange Earning as under;

Export proceeds shall be realised in freely convertible currency except for deemed exports.

Export to SEZ Units/ Supplies to Developers/Co-developers, irrespective of currency of realization, would also be counted for discharge of Export Obligation.

 

 

Foreign exchange realisation requirement under EPCG: proceeds must be in freely convertible currency, with specified exceptions. Conditions for discharge of export obligation under the Export Promotion Capital Goods (EPCG) Scheme require export proceeds to be realised in freely convertible currency, except for deemed exports; exports to SEZ units and supplies to developers or co-developers shall be counted for discharge of the export obligation irrespective of the currency of realisation.