Extension of Export Obligation Period

5.11

Concerned Regional Authority may consider request for grant of first extension in E.O. period on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled export obligation or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be at the choice of exporter, for each year of extension sought. Such first extension in EO period can be for a maximum period of two years.

(Above provisions related to grant of extension in export obligation for the first two years has been amended vide PN. NO. 126/2008, DT. 06/01/2009)

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Concerned RA, may consider one or more request for grant of extension in export obligation period, on payment of composition fee of 2% of total duty saved under authorization or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be, at the choice of exporter, for each year of extension sought. Such extension can be for a maximum period of 2 years. ]

Extension in EO period beyond two years’ period available above, may be considered, for a further extension upto 2 years with a condition that 50% of duty payable in proportion to the unfulfilled export obligation is paid by authorization holder to Custom authorities before an endorsement of extension is made on EPCG authorization by RA concerned. In such cases, no composition fee is to be paid or additional EO is to be imposed as prescribed in the Para above. In case the firm is still not able to complete the export obligation, duty already deposited will be deducted from total duty plus interest to be paid for EO default.

Extension in export obligation period shall also be subject to such terms and conditions as may be prescribed by competent authority.