5.17

Extension in Export Obligation Period

(a) Extension in Export Obligation Period of EPCG authorization issued prior to Notification of FTP 2015-20 RE 2017 shall be governed by relevant provisions of HBP applicable on the date of issue of authorisation.

(b) Extension in Export Obligation Period of EPCG authorization issued prior to Notification of FTP 2015-20 shall be governed by relevant provisions of HBP Vol 1 applicable on the date of issue of authorization.

(c) In case of zero duty EPCG Authorizations, two extensions of one year each in export obligation period may be considered by RA concerned, on payment of composition fee equal to 5% and 10% respectively of proportionate duty saved amount on unfulfilled export obligation for the first/second year of extension or an enhancement in export obligation imposed to the extent of 10% /20% respectively of the total export obligation imposed under the authorization for first/second year of extension, as the case may be, at the choice of the exporter. Minimum composition fee will be Rs.10,000.

(d) Request for extension in EO Period shall be made to RA within 90 days from the date of expiry of original EO Period. However, RA may consider the request for extension received upto 180 days with additional composition fee of Rs.5,000.

(e) However, for the authorisations covered under para 5.17 (a), (b) and (c), if the export obligation period expires during 1st February, 2020 to 31st July, 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry.

(Above (e)  has been added vide PUBLIC NOTICE NO. 67/2019, DT. 31/03/2020)

(f)  a. For EPCG Authorisations, where original or extended Export Obligation (EO) period is expiring during the period between 01.08.2020 and 31.07.2021, the Export Obligation period would be extended till 31.12.2021 without any composition Fees. However this extension is subject to 5% additional export obligation in value terms (in free Foreign Exchange) on the balance Export Obligation on the date of expiry of the original/extended export obligation period.

b. The option to avail EO extensions with payment of composition fees under this para (5.17(c)) would remain available for these authorisations as per eligibility.

c. In cases where EPCG Authorisation Holder has already obtained EO extension upon the payment of composition fee, the refund of the composition fee will not be permitted.

(Above (f) has been added vide NOTIFICATION NO. 28/2021, DT. 23/09/2021)