Clubbing of Exports Promotion Capital Goods (EPCG) Licenses
Introduction Clubbing of Exports Promotion Capital Goods (EPCG) Licenses
The clubbing of Exports Promotion Capital Goods (EPCG) Authorisations is exactly what its name suggests, it is the clubbing of two or more EPCG authorisations. No, we are not talking about going to a club or partying over here.
As per the data of the Directorate General of Foreign Trade (DGFT) Policy clubbing simply means just combining two or more EPCG authorisations that are issued to an authorisation holder via a proper process.
In other words, adjustment of excess exports from one licence to an another licence to meet the overall EO against all the clubbed EPCG licences.
How can a person apply for clubbing of EPCG authorizations?
Following are the steps through which an individual can acquire the goal of clubbing of EPCG authorizations.
• An applicant can put in an application for the purpose of clubbing to The Regional Authority (RA) concerned in ANF 5C. The process of clubbing of EPCG authorisations will only receive a green signal from the side of the respective authorities if the products that are set to export are endorsed on the authorisations are exactly the same or somewhat of similar nature. Make it a point to check that the EPCG authorizations are granted by the same The Regional authority as you would not want to dig a hole for yourself to fall in.
• The total amount of export obligation is usually re-fixed taking into account total of duty saved amount of the clubbed authorisations by the authorities. Ensure that all your documents are prepared well in advance to avoid any type of confusion. That will save your time and energy both.
• When the clubbing takes place, then the authorisations for the purposes are deemed in order to make a single EPCG authorisation. Let’s talk about the time period for the procedure of clubbing of EPCG authorisations. The time span of the export obligation for clubbed authorisations can be determined by the issue date of the first authorisation. Don’t forget to pay attention to the nitty-gritty of the process of clubbing authorisations.
• Now we will take a trip down the lane of average export obligation to get a better understanding of the average export obligation for clubbed authorisations. The average export obligation for clubbed authorisations will be basically the highest of the average export obligations that have been endorsed on individual authorisations. After this, the authorities will think about clubbing them.
• The clubbing will be granted by the authorities only during the valid export obligation period which consists of the extended period if that is present by any chance. Let’s dive deep into the process, if in the event of clubbing authorisations all of the authorisations have an export obligation period that’s somehow over than what’s expected, then in that case it may get permission from the authorities for further regularisation purposes only if it have been issued under the period of the same policy provided by the authority.
• In the scenario of clubbing of EPCG authorizations if the export obligation can be fulfilled by the export of alternate products and services then the proportion of the different variety of goods and services that are considered for the fulfillment of export obligation and the regularisation will be narrowed down to the lowest percentage of the alternate goods and services that have been granted in the clubbed authorisations.
• All the EPCG authorisations that have been issued by the respected authority prior to the date 1.4.2007 will be governed as per the provisions stated in Chapter 5 of HBP Vol.1 (RE-2006). The authorisations of EPCG that have been issued between 01.04.2007 and 17.04.2013 will be monitored by the provisions in Chapter 5 of HBP Vol.1 (RE-2012, as amended).
• The EPCG authorisations that have been issued after 18.04.2013 till the issue of Notification of HBP 2015-20 will be administered as per the provisions stated in the Public Notice No.1 dated 18.4.2013. Authorisations of EPCG that have taken place between Notification of HBP 2015-20 till the Notification of HBP 2015-20 (RE 2017) will be monitored as by provisions mentioned in HBP 2015-20.
Conclusion of
The clubbing of the EPCG licenses of the same license holder will be permitted by the respected authority as per the provisions that have been stated above. It’s very essential to know the period of the export obligation and the expiry date. You can do your research and find the top DGFT consultants in your state. The EPCG license consultants can guide you throughout the process.
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