Block-wise Export Obligation Extension in EPCG

Table of Content

1. What is EPCG Scheme?
2. Applying for EPCG scheme
3. Amendment of EPCG Licence
4. Import Process under EPCG & Installation Certificate
5. Export Obligation under EPCG scheme
6. Block-wise Extension under EPCG scheme
7. Export Obligation Period extension under EPCG scheme
8. Fulfillment of export obligation / Export process under EPCG licence
9. Closure of EPCG licence / Export Obligation Discharge Certificate
10. FAQs
11. Important notifications related to EPCG scheme

Block-wise Export Obligation Extension in EPCG

If the exporter has not fulfilled 50% export obligation allocated in the 1^st block, they must request for block wise extension. Such request should be submitted within 6 months from the date of expiry of 1^st block EO period along with composition fee of 2% on duty saved amount proportionate to the unfulfilled portion of the EO pertaining to the block. Regional Authority (RA) may consider the request of extension of Block wise EO period, received after 6 months, but with 6 years from the date of issue of authorization, with a late fee of Rs. 10,000/- per authorization. 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 fee of Rs. 5000/- for each year per authorization. This late fee is in addition to the composition fee that may be payable in account of shortfall in export obligation. Where EO of the 1^st block is not fulfilled, except in cases where the EO prescribed for 1^st block is extended by the RA, the Authorization holder shall, within 6 months from the expiry of the block, pay duties of customs (along with applicable interest notified by DOR) proportionate to Duty saved amount on total unfulfilled EO of the 1^st block.

Refer to Public Notice 03/2015 Dated 13^th April 2022