QUESTION
We have two Unit in same IEC Code. One unit is in Under Chapter 39 (Plastic
Industries) and Second unit is in Under Chapter 32 (Dyes and Intermediates). We
Apply EPCG License under FTP Chapter 5 in Plastic Industries (Chapter 39) and
Import Machinery in related to Plastic Products but now Export in Plastic
Products is very nominal in Plastic Industries. Now we get Orders in Dyes and
Intermediates Industries (Chapter 32). My query is `Can we utilize EPCG License
against Dyes and Intermediates Exports and fulfill Export Obligation.`
ANSWER
Facts of the case: We have two Unit in same IEC Code. One unit is in
Under Chapter 39 (Plastic Industries) and Second unit is in Under Chapter 32
(Dyes and Intermediates). Can we utilize EPCG license applied under Chapter 5 in
Plastic Industries (Chapter 39) against Dyes and Intermediates Exports (Chapter
32) and fulfill Export Obligation.
Law Applicable:
Foreign Trade Policy 2015-20 CHAPTER-5
|
5.04 |
Export Obligation (EO) |
Following conditions shall apply to the fulfillment of EO:- (a) EO shall be fulfilled by the authorization holder through export of goods which are manufactured by him or his supporting manufacturer / services rendered by him, for which the EPCG authorization has been granted. (b) EO under the scheme shall be, over and above, the average level of exports achieved by the applicant in the preceding three licensing years for the same and similar products within the overall EO period including extended period, if any; except for categories mentioned in paragraph 5.13(a) of HBP. Such average would be the arithmetic mean of export performance in the preceding three licensing years for same and similar products. |
Interpretation: As per para foreign trade 5.04 the export is required to be made using the capital goods for which EPCG authorization is granted Relevant portion of the same is reproduced above.