Circular No.ES/ 205 /2017-18 October 31, 2017
To: Members of the Council
Sub: Onetime condonation of time period in respect of obtaining block-wise extension in Export Obligation (EO) period under EPCG Scheme
DGFT has issued Public Notice No. 35/2015-2020 dated 25.10.2017 informing about following one time relaxations in procedures in respect of obtaining block-wise extension in Export Obligation period under EPCG scheme.
As you are aware, EPCG authorization holders, while maintaining the average export obligation has to fulfill specific export obligation over the prescribed block period as applicable.
Accordingly, 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 (RA) 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".
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.
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 which are as follows:
Therefore, as a onetime measure in relaxation of procedure, it has been decided that –
This facility would not be available in respect of the following cases:
Members may kindly make a note of the above.