5.11
- Document type
- Procedure
- Dated
Extension of Export Obligation Period
Extension of Export Obligation Period
5.11
The concerned Regional authority, may consider one or more request for grant of extension in export obligation period for a period of 2 years, on payment of a composition fee of 2% of the total duty saved under the Authorisation or an enhancement in export obligation imposed to the extent of 10% of the total export obligation imposed under the Authorisation, as the case may be, at the choice of the exporter, for each year of extension sought.
However extension in EO period beyond the two years period available above, may be considered, for a further extension upto 2 years with a condition that 50% of duty payable in proportion to the unfulfilled export obligation is paid by the Authorisation holder to the Custom authorities before an endorsement of extension is made on the EPCG Authorisation by the Regional authorities. In such cases, no composition fee is to be paid or additional EO is to be imposed as prescribed in the Para above. In case the firm is still not able to complete the export obligation the duty already deposited will be deducted from the total duty plus interest to be paid for EO default.
The extension in export obligation period shall also be subject to such terms and conditions as may be prescribed by the competent authority. Wherever the export obligation period is extended, the Authorisation holder shall be required to maintain average export obligation during the extended period as well.
Exports made on or after the date of receipt of application for EO extension shall only qualify for discharge of EO fulfillment under the Scheme.
(Please refer CUS CIR NO. 16/2006 DATE 09/05/2006)
5.11
The concerned Regional authority, may consider one or more request for grant of extension in export obligation period for a period of 2 years, on payment of a composition fee of 2% of the total duty saved under the Authorisation or an enhancement in export obligation imposed to the extent of 10% of the total export obligation imposed under the Authorisation, as the case may be, at the choice of the exporter, for each year of extension sought.
However extension in EO period beyond the two years period available above, may be considered, for a further extension upto 2 years with a condition that 50% of duty payable in proportion to the unfulfilled export obligation is paid by the Authorisation holder to the Custom authorities before an endorsement of extension is made on the EPCG Authorisation by the Regional authorities. In such cases, no composition fee is to be paid or additional EO is to be imposed as prescribed in the Para above. In case the firm is still not able to complete the export obligation the duty already deposited will be deducted from the total duty plus interest to be paid for EO default.
The extension in export obligation period shall also be subject to such terms and conditions as may be prescribed by the competent authority. Wherever the export obligation period is extended, the Authorisation holder shall be required to maintain average export obligation during the extended period as well.
Exports made on or after the date of receipt of application for EO extension shall only qualify for discharge of EO fulfillment under the Scheme.
(Please refer CUS CIR NO. 16/2006 DATE 09/05/2006)