Closure of EPCG licence / Export Obligation Discharge Certificate
To receive an Export Obligation Discharge Certificate (EODC), you must complete your export obligation fixed in proportion to the total duty saved value. This procedure is called redemption or closure of EPCG.
(or)
On payment of the customs duty in case the EPCG authorization holder fails to fulfill prescribed export obligation. This process is called regularization of bonafide default exit from EPCG scheme
(or)
By using the provision of Clubbing. Two or more EPCG authorisation is permitted for cases where the items of export are same or similar to set off the excess exports made in one licence for the less exports made in another licence. Once the clubbing is done, the exporter can apply for EODC
Redemption of License is a significant part of the EPCG Scheme and closing it at DGFT is a complex task.
Authorization holder shall apply for EODC in ANF 5B with documents prescribed as a proof of EO fulfillment. On being satisfied, RA concerned shall issue EODC to the Authorization holder and a copy will be forwarded to ICEGATE through online.
The BG/Bond cancellation at Customs is the last procedure under the EPCG scheme. Once the Export Obligation is completed and EODC is received from DGFT the license holder needs to approach the customs with required documents for the BG/Bond Cancellation.
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