Refixation of Export Obligation

5.19

(a) The EPCG licence holder can apply for the refixation of export obligation as given in para 5.4 (i) of the Policy in the form at Appendix 9D.

(b) In case of all EPCG licences where the application is made for re-fixation within two years of its issuance, the export obligation shall be automatically refixed based on 8 times the duty saved on the date of issuance of licence.

(c) For all other EPCG licences, the licence holder should have fulfilled the mandated blockwise export obligation at the end of the particular block in which the application is made. For example if the licence holder applies in the 3rd-4th year block for an EPCG licence with an export obligation period of 8 years, he should have fulfilled 15% of the original export obligation . In such cases, the refixed export obligation would be computed as under:

(% export obligation unfulfilled) x (8) x (duty saved on the date of issuance of the licence)

(d) In cases where the remaining export obligation period of the EPCG licence is less than 2 years on the date of application for refixation, and the mandated blockwise export obligation has been fulfilled, the export obligation would be refixed at two times the duty saved on the date of issuance of licence.

(e) There would be no change in average export obligation fixed or the export obligation period of the original licence.

(f) An application under Appendix 9 D can also be made if the EPCG licence holder has got his average and EPCG export obligation refixed on account of the change in product/ service as per the provisions of para 5.4 (i) of the Policy.