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The Export Promotion Capital Goods (EPCG) License<\/a> acts as a ticket for the manufacturer exporters to import their Capital goods under Zero duty. A candidate can get an EPCG license from the Directorate General of Foreign Trade (DGFT).<\/span> The export obligation period is usually 6 years. It is the period from the date of issuance granted by the licensing authority. The full term of six years is segregated into two blocks and they are known as the first block and the second block. The first block consists of a total of four years from the date issued by the authorities, whereas the second block is for the remaining two years of the authorization. As per the Foreign Trade Policy provisions, 50% of Export obligation to be fulfilled in each block.<\/span><\/p>\n Make sure you apply for the extension within the period or otherwise the process will be more complex. Go through all the guidelines that are stated on the DGFT website about EPCG authorization. It is very crucial to know every minute thing regarding the procedure to get the desired results and that to on time.<\/span> The extension of the export obligation period can be obtained by an exporter but there is a certain limit to which extensions can be sanctioned by the licensing authority. The authority permits an applicant with following two extensions: –<\/span><\/p>\n 1) Block-wise Export obligation period extension from first block to second block.<\/span> What is the application fee required for the extension of the Export Obligation Periods?<\/strong><\/span><\/p>\n 1) Details of composition fees for the EPCG licenses obtained up to 04.12.2017<\/span><\/p>\n 2) Details of composition fees for the EPCG licenses<\/a> obtained from 05.12.2017<\/span><\/p>\n
\nEarlier all these procedures seemed lengthy and manual but now that everything can be done online it saves a lot of time of the applicants. Currently, one can put in an application via the official site of DGFT. You can formulate a new file, fill in all the necessary details and attach all the documents that are declared in the application form.<\/span>
\nOne of the prime objectives of the EPCG Scheme was to enhance the state of import of capital goods from the country and take the level of import and export business a notch higher by improving it.<\/span><\/p>\nWhat is Export Obligation Period?<\/strong><\/span><\/h3>\n
How can you extend the period of Export Obligation?<\/span><\/h4>\n
\nAn exporter must have a valid reason for the extension of the export obligation period, then only the authorities will look further into the matter and decide whether to extend the period of export obligation or not. Also, the applicant must put forward the reason because of which he\/she was not able to complete the export obligation within the given period of time.<\/span><\/p>\nHow many times can a person extend the Export Obligation Period?<\/span><\/h4>\n
\n2) Export obligation period for two more years i.e. 7th & 8th year.<\/span>
\nSo when to utilize these extensions is something an exporter can ponder about. The decision about the extensions is solely dependent on the applicant.<\/span><\/p>\n\n\n
\n Type of EOP extension<\/strong><\/span><\/td>\n Composition fee details<\/strong><\/span><\/td>\n<\/tr>\n \n Block-wise EOP extension<\/span>
\n(1st block to 2nd block extension)<\/span><\/td>\n2% on duty saved amount proportionate to<\/span>
\nunfulfilled EO in 1st block<\/span><\/td>\n<\/tr>\n\n Extension in Export Obligation Period<\/span>
\n(2nd block to 7th & 8th year Extension)<\/span><\/td>\n2% of proportionate duty saved amount on unfulfilled export obligation for each year of extension or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization<\/span>
\nfor each year of extension, as the case may be, at the choice of the exporter.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n
\n Type of EOP extension<\/strong><\/span><\/td>\n Composition fee details<\/strong><\/span><\/td>\n<\/tr>\n \n Block-wise EOP extension<\/span>
\n(1st block to 2nd block extension)<\/span><\/td>\n2% on duty saved amount proportionate to<\/span>
\nunfulfilled EO in 1st block<\/span><\/td>\n<\/tr>\n\n Extension in Export Obligation Period<\/span>
\n(2nd block to 7th & 8th year Extension)<\/span><\/td>\n5% and 10% respectively of proportionate duty saved amount on unfulfilled export obligation for the first\/second year of extension or an<\/span>
\nenhancement in export obligation imposed to the extent of 10% \/20% respectively of the total export obligation imposed under the<\/span>
\nauthorization 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.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n