Standard Operating Procedures (SOP) regarding monitoring of Export obligation fulfilment under EPCG and Advance authorization scheme-Reg.

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....rder to streamline the procedure regarding monitoring of fulfilment of Export obligation under EPCG & Advance authorization scheme and facilitate trade, following standard operating procedure (SOP) regarding Export Obligation Monitoring Cell (EOMC) is notified with immediate effect: 2. Export Obligation Monitoring Cell (EOMC) is monitoring the fulfilment export obligation under EPCG and Advance Authorisation Schemes. Notification No. 26/2023 - Customs dated 01.04.2023 provides duty exemption under EPCG scheme subject to the conditions prescribed in terms of Chapter 5 of the Foreign Trade Policy and Notification No. 21/2023 - Customs dated 01.04.2023 provides duty exemption to goods imported under Advance Authorization licenses subject to t....

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....isions of para 5.14 (c) of Handbook of Procedures 2015-20 (Para 5.13 (c) Handbook of Procedures, 2023) provides that, "Where EO of the first block is not fulfilled in terms of the para 5.14 (a) of Handbook of Procedures 2015-20 (Para 5.13(a) Handbook of Procedures, 2023), except in cases where the EO prescribed for the first block is extended by the Regional Authority subject to payment of composition fee of 2% on duty saved amount proportionate to unfulfilled portion of EO pertaining to the block, the authorization holder shall, within 03 months from the expiry of the block, pay duties of Customs (along with applicable interest as notified by Department of Revenue) proportionate to duty saved amount on total unfulfilled EO of the first blo....

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....ntity List (DEL) or Show Cause Notice (SCN)/Order-in-Original is issued, recovery action to be initiated by way of issuance of SCN. 9. As per the conditions of the said Notifications, the importer is legally bound to produce evidence regarding fulfilment of export obligation against the said licence within 30 days of the date of expiry of the Export Obligation Period. Therefore, the importer is liable to pay duty along with interest at the applicable rate in respect of the goods (imported under such export promotion schemes) in terms of the conditions of the said notification read with conditions of the bond executed by the importer in terms of Section 143 of the Customs Act read with condition of such Advance Authorisations / EPCG Licence....