A person holding an EPCG licence may source the capital goods from a domestic manufacturer instead of manufacturing them. In the event of a firm contract between the parties for such sourcing, the domestic manufacturer may apply for the issuance of Advance Licence for Deemed Exports for the import of inputs including components required for the manufacture of said capital goods.

The domestic manufacturer may also replenish the inputs including components after supply of capital goods the EPCG licence holder. The export obligation relating to the EPCG licence shall be reckoned with reference to the CIF value of the licence actually utilised.

(This Paragraph has been amended vide NotificationNo.36(RE-00)/1997-2002 dated 29/09/2000)