EPCG Scheme was introduced by Notification No.169/90 and subsequent Notification No.99/94 by virtue of which the subject notification was rescinded. At present Notification No.102/2009, 101/2009 and 103/2009 are the effective notification and the imports under EPCG are being effected under these notifications.
As pre the conditions of the notifications under EPCG Scheme, the Licence Holder / Importer as to fulfill export obligation equivalent to the amount as fixed by the licencing authority in terms of the respective notification. While issuing notification under EPCG block period wise export obligation is prescribed in addition to the annual average of export to be maintained by the licence holder.
Further the licence holder / importer should produce installation certificate within six months from the date of import of the Capital Goods certifying that such goods are installed at the specified premises in terms of licence.
The every purpose of EPCG scheme is to export obligation visa-vis duty benefit claimed. In case, the licence holder / importer fails to fulfill the export obligation as prescribed, they are bound to pay the duty equal to the amount as applicable to the imports in proportionate to the unfulfilled export obligation.
This custom house has taken up the monitoring of the export obligation discretely and in all the cases wherever the importer fail to produce the evidence of fulfillment of export obligation, they are being issued Demand Notice with Show Cause Notice. All such cases have been segregated and demand notices have been issued.