Extension of Export Obligation Period 5.11

The concerned licensing authority, may consider one or more request for grant of extension in export obligation period, on payment of a composition fee of 2% of the total duty saved under the Licence or an enhancement in export obligation imposed to the extent of 10% of the total export obligation imposed under the Licence, as the case may be, at the choice of the exporter, for each year of extension sought. The total extended export obligation period shall not exceed two years from the expiry of the original export obligation period. Exports made on or after the date of receipt of application for EO extension shall only qualify for discharge of EO fulfillment under the Scheme However extension in EO period beyond the two years period available above, may be considered, for an extension upto 3 years with 50% enhanced EO and upto 5 years with 100% enhanced EO in addition to any other provision subject to such undertaking by the licensee. However, in such cases, the licensee shall not be given the benefit of refixation of EO as given in Para 5.4 (i) of the Policy. In cases where an enhanced EO is imposed on the licence holder for granting such extension, he shall give an additional BG to the extent of the proportional duty saved to the enhanced EO imposed to the licensing authority concerned in addition to extending the validity of BG/LUT submitted at the time of initial imports. No exemption from BG shall be granted to any category of exporter under this Clause. The extension in export obligation period shall be subject to such terms and conditions as may be prescribed by the competent authority. Wherever the export obligation period is extended, the licence holder shall be required to maintain average export obligation during the extended period as well.