TaxTMI 
TaxTMI 
Export Obligation under EPCG License
X X X X Extracts X X X X
X X X X Extracts X X X X
....xport Obligation under EPCG License<br> Query (Issue) Started By: - Raja krishnan Dated:- 21-12-2015 Last Reply Date:- 26-12-2015 Customs - Exim - SEZ<br>Got 10 Replies<br>Customs<br>Dear Experts, One manufacturing unit import of paper cutting machine under EPCG procedure. Now they will be decide to complete their export obligation from their sister concern of drilling machinery manufacturing & e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xport unit. my doubt is whether it is correct one. Please given your reply along with related notification, circular and public notice if any. Reply By Ganeshan Kalyani: The Reply: If you do not have exports and your sister concern is having exports then your export obligation can be fulfilled by endorsing your EPCG number in their export Shipping Bills. The proof should be collected from them wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ich will be required later. Reply By MUKUND THAKKAR: The Reply: Export obligation under the EPCG scheme your sister concern or group of company may full fill only 50% and rest of obligation should be completed by your unit. Reply By Raja krishnan: The Reply: Dear All, Thanks for all your immediate action in this regard. but my doubt is based on the commodity, because both are different commodi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ties. Import machinery is Paper cutting but the export obligation competed by drilling machinery export. whether it is correct one. Reply By MUKUND THAKKAR: The Reply: You can export any product to meet your obligation thru your group of company or sister concern up to 50% only. it is understable that your group of company manufacturing the diff product. so donot worry first completed your 50% t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hru your other concern. and balance try to completed thru your company. Reply By Ganeshan Kalyani: The Reply: Sir, if that company does not have any export then how it can fulfill the balance half of the export obligation. I have observed that company get full export obligation done through sister concern. However if you can share the provision which depicts that only half of the export obligatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n done by sister concerns will be accepted. Thanks. Reply By YAGAY AND SUN: The Reply: Please check para 5.04 of FTP 2015-2020 and para 5.10 of HBP Vol.1 in this regard. Reply By MUKUND THAKKAR: The Reply: if old EPCG refer FTP-2009-2014 para 5.5(1) Reply By Ganeshan Kalyani: The Reply: I have perused the given reference but could not locate the 50% conditions mentioned in FTP. It would be be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....neficial to me to enrich my knowledge if could reproduce the relevant para in the reply itself. Thanks. Reply By MUKUND THAKKAR: The Reply: Export obligation 5.5 Following conditions shall apply to the fulfillment of the export obligation:- (i) Export Obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant. Export obligation under the scheme shall be, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any; except for categories mentioned in paragraph 5 .7.6 of HBP v1. Such average would be the arithmetic mean of export performance in the last three years for the same and similar pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ducts provided that Premier Trading House (PTH) shall have option of fixing average level of exports based on arithmetic mean of export performance in the last five years 63 instead of three years. Upto 50% Export Obligation may also be fulfilled by exports of other good(s) manufactured or service(s) provided by the same firm / company, or group company / managed hotel, which has the EPCG....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authorization. However, EPCG authorization issued prior to 1 .4.2008 will be governed by earlier policy provisions. However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company / managed hotel in preceding three years for both the original and the substitute product(s) / service(s), despite exemptions ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in Para 5.7.6 of HBP v1. Reply By Ganeshan Kalyani: The Reply: Thanks for information.<br> Discussion Forum - Knowledge Sharing ....