POL CIR NO. 13/(RE-98)/1998-1999 Dated 11-06-1998

Sub:

-Monitoring of export obligation against EPCG Licences.

Sir,

Attention is invited to Paragraph 6.11 and 6.12 of the current Handbook of  Procedures, 1st April, 1997- 31st March, 2002 (revised edition announced on  13.4.1998), which laid down the time schedule for fulfilment of EO under 10%  EPCG Scheme and Zero Duty EPCG Scheme. The said time schedule is applicable to  the EPCG licences issued on or after 5th June, 1995. 

2. All the Regional Licensing Authorities are requested to strictly follow the  procedures laid down for monitoring of export obligation . In the case of  licences issued under 15%/10% EPCG Scheme, the licence holder should be advised  to sent the annual report on the progress made in fulfilment of export  obligation against the licence issued to him in the format prescribed given in  Appx. 10(c) of the current Handbook of Procedures within three months from the  expiry of every year starting from the second year of the EO period. Likewise,  in the case of the licences issued under Zero Duty EPCG Scheme , the licence  holder should be advised to sent the report on the progress made in fulfilment  of the export obligation within three months from the expiry of the every block  starting from 2nd block of the EO period. After scrutiny of the documents, the  RLA should intimate the customs authority regarding the fulfilment or otherwise  in EO as per the time schedule laid down in the Handbook of Procedures. 

RLAs should continue to send a consolidated statement regarding the position of  EO fulfilment to DGFT every month in the format already prescribed for the  purpose regarding the number of licences issued , CIF value , export  obligation, position regarding fulfilment of EO etc.. The monitoring report  should also indicate sectorwise details regarding the licenses issued , EO  fulfillment etc. 

This issues with the approval of D.G.F.T. 

(Ajay Sahai)
Dy.Director General of Foreign Trade

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