EXPORT OBLIGATION FULFILL MENT (EO), Customs - Exim - SEZ

[SACHIN SHAH]

Sir,

We had purchase all New machinery under EPCG Scheme , now some guideline require from you that due to some less export oreder received last 1 1/2 Years due to some internation market competition , we are unable to fulfillment export obligation .

Now quetion is that 3 to 4 Machinery purchase under 3% & 5% Concession rate of duty under EPCG & there is one or two months pending for completion of block period ( 8 Years to be completion on oct-2011 ) is it we apply for extenton for EO fulfillment ?

Please guide to us

sachin

 

Posts / Replies

[pradeep khatri]

You may apply for extension of time period for fulfillment of export obligation but such extesion is coupled with  penalty of 2%.

[SACHIN SHAH]

Sir,

Penalty of 2% for non fulfillment of Export obligation or Saved Custom duty Please clear .

 

Regards,

SACHIN

[pradeep khatri]

Dear Sir,

Extension for fulfilment of export obligation upto two years can be obtained from RA on payment of composition fee of 2% of proporttionate duty saved amount on unfulfilment obligation or an enhancement of total export obligation by 10%, at the choice of exporter, for each year of extension sought.  Such first extension of Export Obligation cab be maximum period of two years - para 5.11 of HBP Vol. 1 2009-14.

Further, extension of export obligation beyond 8+2 year can be considered for a further period of two years with condition that 50% of duty payable in proportion to unfulfilled export obligation is paid to customs - para 5.11 of HBP Vol. 1 2009-14 - MF (DR) Circular no 16/2006-Cus dated 09-05-2006.

This is for your kind information.

Best Regards.

Pradeep Khatri