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Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023Extract ..... ng addition(s)/deletion(s), if any, may be filed with RA concerned provided the authorisation is valid for import. The applicant would give justification for seeking such amendment(s) along with fresh nexus certificate from an independent Chartered Engineer. (c) An application for amendment in the list of export item(s) including addition(s)/deletion(s) if any, may be filed with RA concerned provided the Export Obligation period of the authorisation is valid and the CG has nexus with export product. The applicant would give justification for seeking such amendment(s) along with fresh nexus certificate from an independent Chartered Engineer. 5.04 Certificate of Installation of Capital Goods (a) Authorisation holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorisation holder or his supporting manufacturer(s). The RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a compo ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... available to a direct EPCG Authorisation holder as per paragraph 5.01 of FTP. (c) If a standalone EOU / SEZ unit wishes to de-bond from EOU to EPCG Scheme, there shall be no requirement for maintenance of average export obligation and the unit shall be required to maintain only specific export obligation equivalent to six times of the proportionate duty saved amount of the depreciated value of capital goods for which the Authorisation has been obtained. (d) In case one unit of a firm / company opts to de-bond from EOU to EPCG Scheme, while other unit(s) are DTA units, then the average export obligation in respect of the authorisations issued to the firm / company (other than de-bonding unit) shall remain unchanged and the average EO, after de-bonding of the unit, shall be fixed by excluding the exports made by the de-bonded unit from the total exports of the firm/ company, which runs concurrently for all the units of the firm/ company. In such a case, specific EO equivalent to six times of the proportionate duty saved amount on the depreciated value of the Capital Goods would be imposed on the de- bonding unit shifting to the EPCG Scheme. 5.08 Procurement from SEZ (a) If the reques ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... of export obligation: (a) Name of the supporting manufacturer as well as the exporter shall be indicated on export documents. (b) In case the Authorisation holder wants to export through a third party, export documents viz., shipping bills/Bill of exports etc. shall indicate name of both authorisation holder and supporting manufacturer, if any, along with EPCG authorisation number. Shipping bill/Bill of Export, GST invoice and e-BRC/ export realisation from RBI s EDPMS should be in the name of third party exporter. The goods exported through third party should be manufactured by the EPCG authorisation holder or the supporting manufacturer where the capital goods imported under the authorisation have been installed. The goods manufactured by the authorisation holder shall be exported as it is by the ultimate exporter (third party exporter) without further processing. Proceeds realised through normal banking channel from third party exporter s account to the authorisation holder s account on account of such exports shall only be counted towards fulfillment of export obligation. (c) Disclaimer certificate from third party that they shall not use such proceeds towards EO fulfillment of ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... ge export obligation, fulfill the specific export obligation over the prescribed block period in the following proportions: Period from the date of issue of Authorisation Minimum export obligation to be fulfilled Block of 1st to 4th year 50% Block of 5th and 6th year Balance EO (b) The Authorisation holder would intimate the Regional Authority on the fulfilment of the export obligation, as well as average exports, within three months of completion of the block. (c) Request for extension of Export Obligation period of first block shall be submitted within 6 months from the date of expiry of first block EO period along with composition fee of 2% on duty saved amount proportionate to unfulfilled portion of EO pertaining to the block. RA may consider the request for extension of block wise EO period, received after 6 months, but within 6 years from date of issue of authorisation, with a late fee of Rs. 10,000/- per authorisation. Application made beyond 6 years, for extension of block-wise EO period for regularization purpose, shall also be considered by RA concerned, with an additional late f ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... rance of such goods without endorsement by RA concerned. The authorisation holder shall furnish additional fee to cover excess imports effected, in terms of duty saved amount, to RA concerned, at the time of application for EODC. Export obligation shall automatically stand enhanced proportionately. (b) In excess of duty saved amount indicated on the authorisation by more than 10%, the RA concerned, as per its delegated powers, may allow enhancement in duty saved amount of the EPCG authorisation. The Authorisation holder shall furnish additional BG/LUT to the Customs Authority. (c) Less than the duty saved amount indicated on the authorisation, the export obligation shall stand reduced on pro-rata basis with reference to actual utilization of the authorisation. 5.16 Extension in Export Obligation Period (a) Extension in Export Obligation Period of EPCG authorisation issued prior to Notification of Foreign Trade Policy 2023 shall be governed by relevant provisions of HBP applicable on the date of issue of authorisation. (b) In case of extension of Export obligation period beyond 6 years, two extensions, from date of expiry, of one year each may be considered by RA concerned, on payme ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... O extension in the event of ban on export product Whenever a ban/restriction is imposed on export of any product, export obligation period in respect of EPCG authorisations already issued prior to imposition of ban on such export products would stand automatically extended for a period equivalent to duration of such ban, without any composition fee. Authorisation holder would not be required to maintain average EO as well for the ban period. 5.20 Export Obligation Discharge Certificate (EODC) (a) Authorisation holder shall apply for online EODC in ANF 5B with documents prescribed therein as a proof of EO fulfillment. (b) On being satisfied, RA concerned shall issue EODC to the EPCG authorisation holder and an online copy will be forwarded to ICEGATE through API message exchange for further action by Jurisdictional Customs Authorities with whom BG/LUT has been executed. (c) RA shall process such applications ordinarily within 30 days. Shortcomings, if any, shall be pointed out normally in one go. Once documents are complete in all respects, export obligation shall be discharged within 30 days of receipt of complete documents /information. 5.21 Regularization of bonafide default and ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x ..... ure to fulfil export obligation or any other condition of authorisation, authorisation holder shall be liable for action under FT (D R) Act, 1992, as amended, Orders and Rules made thereunder, provisions of FTP/HBP, Customs Act, 1962, as amended from time to time or any other law in force. 5.25 Clubbing of EPCG authorisations (a) Clubbing of two or more EPCG authorisations issued to the same authorisation holder would be permitted. (b) An application for clubbing can be made to RA concerned in ANF 5C. Clubbing shall only be permitted in case export products endorsed on the authorisations are same/similar and if authorisations are issued by the same RA. (c) Total export obligation would be re-fixed taking into account total of duty saved amount of the clubbed authorisations. (d) On Clubbing, authorisations for all purpose shall be deemed to be a single EPCG authorisation. Export obligation period for clubbed authorisations shall be reckoned from first authorisation issue date. (e) Average export obligation for clubbed authorisations would be highest of average export obligations endorsed on individual authorisations so clubbed. (f) Clubbing would be permitted during valid EOP includ ..... x x x x x Extracts x x x x x Chapter 5 - Export Promotion Capital Goods (EPCG) Scheme - Foreign Trade - Handbook of Procedures, 2023 x x x x x Extracts x x x x x
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