New Scheme for Transport and Marketing Assistance (TMA) for Specified Agriculture ProductsMarch 30, 2019
What is happening to MEIS for Exporters- confusions explainedJanuary 16, 2020
EPCG authorisations have been taken in the past by several manufacturers and service providers to save on import duty, with an Export Obligation to be fulfilled over a period of time. However several manufacturers have not been aware of the requirements to submit the installation certificates as a proof of installation of imported machinery in their factories. Further many manufacturers have not been aware that at least 50% of the exports was to be done with in the first block, that could be 4 or 6 years, out of total 6 or 8 years.
In the above cases, the redemption of EPCG and closure of bond/BG at customs becomes difficult even if exports have happened.
DGFT has come to the rescue of such exports vide its Public Notice 55 Dated 03.01.2020 and has given the last opportunity to submit:
- The request for condonation of the time period in respect of obtaining block-wise extension in EO period under EPCG scheme.
- The request for condonation of the time period in respect of obtaining extension in EO period.
- Installation certificate for the EPCG Authorization issued upto March 2015 without penalty.
Therefore EPCG holders should take immediate steps in case they fall in the above categories, otherwise it may become very difficult for them to get the redemption letter and close the EPCG and liabilities.