DGFT clarifies the applicability towards fulfillment of export obligation under EPCG Scheme in case of third party exports

Apr 03, 2019 | by Avantis RegTech Legal Research Team


The Directorate General of Foreign Trade (DGFT) on March 29, 2019 clarified that the provisions of Para 5.10(c) of the Handbook Book of Procedures 2015-20 shall be applicable to third party exports on or after December 05, 2017. 

Accordingly, in the case of third party exports, an authorization holder can count till December 04, 2017 the full realized value of the shipping bill towards fulfilment of export obligation subject to counting of exports only once towards the EPCG obligation and maintenance of Average Export Obligation. The third party exports made prior to December 05, 2017 will be governed by the provisions of the relevant policy or procedure.

All the shipments made December 05, 2017 onwards will be counted towards Export obligation only for the actual payment realized through the normal banking channel from the third party exporter’s account to the authorization holder’s account. 

[Policy Circular No 22/2015-20]

Click here to download the Policy Circular.


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