Block-wise Export Obligation in EPCG for 2004-2013 Period
Relaxed
[Ref: Public Notice No. 35/2015-20 dated 25 October 2017]
Effect of the Public Notice: Onetime relaxation in condonation of delay of submission
for obtaining block-wise extension in Export Obligation under EPCG
scheme is provided.
Subject: Onetime condonation of time period in respect of obtaining blockwise extension in Export Obligation period under EPCG Scheme.
In exercise of powers conferred under Paragraph 2.04
read with Paragraph 2. 58 of FTP 2015-20, the Director General of Foreign Trade in Public interest hereby makes the following one time relaxations in procedures in
respect of obtaining block wise
extension in Export Obligation period under EPCG
scheme.
1. The EPCG authorization holders, while maintaining the average export obligation, fulfill the specific export obligation over the prescribed block
period as applicable.
2. Para 5.14 (c) of the Handbook of Procedures 2015-2020
states as under:
"Where
EO of the first block is
not fulfilled in terms of
the above proportions, except
in cases where the EO prescribed for 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
3 months from the expiry
of the block, pay duties of customs (along with applicable interest as notified by DOR) proportionate to duty saved amount on
total unfulfilled EO of the first block".
3. The Para 5.14 (d)
of the Handbook of Procedures 2015-20
specifies the governance of the relevant provisions
for block-wise Export Obligation in
respect of EPCG authorizations
issued between 1st April 2002 and 18.04. 2013.
4. In view of the time limit of 3 months prescribed in the relevant provisions, during which time the EPCG authorization holder was required to obtain the
block extension in Export
obligation from the RA on payment of composition
fee, the RAs
concerned are unable to consider such
requests wherein submissions are made after 3 months. Many times such requests are for regularization of exports already made. A
large number of
requests for condonation of this period of non-submission within the prescribed time period for obtaining block period extension are received in the DGFT Hqrs. This has caused hardship
and delay in closure
of EPCG authorizations.
5. The
EPCG authorization holders were required to approach RA within the prescribed period for obtaining the
requisite extension on payment of composition fee or should
have paid the proportionate duty to the Customs to
regularize the block-wise EO period. Therefore, as a onetime measure in relaxation
of procedure, it has been decided that the RAs concerned may consider the requests
for block-wise Export
Obligation period extension
for the requests already submitted
but submitted beyond
the time on payment
of additional composition fee of Rs. 5000/- in addition to payment of regular composition fee as applicable. The RA may also consider the requests that may be received upto 31.03.2018 under this facility. This shall be subject
to the condition that the case is otherwise in order and submission of installation certificate for the capital
goods imported to the RA concerned. This facility
is for EPCG authorizations issued from 1st September, 2004.
6. This facility would not be available
in respect of the following
cases:
i Where the issue is under investigation/adjudicated by RA/customs authority/ any other investigating agency.
ii Where the EPCG committee has rejected such extension requests.