EODC/REDEMPTION OF ADVANCE & EPCG AUTHORIZATIONS

The Liability of the Authorization holder is discharged only when he redeems the Authorization.In other words,he submits the documentary evidence of shipment and realization of export proceeds to DGFT and obtains Export Obligation Discharge Certificate from DGFT .Thereafter,he submits these documents including EODC to Custom Authorities and obtains redemption of Bond/BG executed at the time of Imports.
This procedure is very important because if Authorizations are not redeemed in time then the Authorities can take legal action against the erring exporter and declare him defaulter and deny him all further export benefits.

PROCEDURE FOR REDEMPTION OF ADVANCE AUTHORIZATIONS

For Physical Exports

Authorization Holder has to make an application to DGFT (as prescribed by DGFT in ANF -4F) along with the following documents :-

  1. Copy of Ebrc;
  2. Self attested copies of Shipping Bill;
  3. Statement of exports and imports made and actual consumption of inputs in the item exported duly certified by C.A.;
  4. In case where Input Tax Credit is availed for the exported goods then the inputs imported under AA shall be utilized only for the manufacture of dutiable goods for which the Authorization holder shall produce a certificate from either the Jurisdictional Central Excise Authority/Customs Authority or a C.A.;
  5. Account of Consumption and Utilization of duty free inputs in the prescribed form in Appendix 4H duly certified by C.A. .

For Deemed Exports

  1. A copy of Tax Invoice for supplies as prescribed under GST rules duly signed by the unit receiving the material and their jurisdictional excise/customs authorities certifying the item of supply ,its quantity, value and date of such supply;
  2. Payment Certificate from the Project Authority supported by Ebrc;
  3. A statement of supplies giving details of supply invoices and indicating the invoice number,date,FOR value as per Invoices and description of product;
  4. A statement of imports indicating Bill of entry wise item of imports,quantity of imports and its CIF value;
  5. In case where Input Tax Credit is availed for the exported goods then the inputs imported under AA shall be utilized only for the manufacture of dutiable goods for which the Authorization holder shall produce a certificate from either the Jurisdictional Central Excise Authority/Customs Authority or a C.A..

Regularization of Bonafide Default

  1. If EO is fulfilled in terms of value,but there is shortfall in terms of quantity ,the Authorisation Holder shall pay:
    i) Customs duty on unutilized value of imported input along with interest @ 15%.
    ii)3% of the CIF value of the unutilized imported material ,if the item is under restricted category.
  2. If the EO is fulfilled in quantity but there is shortfall in value ,no penalty if the Authorization holder has achieved Minimum value addition.Howeve, if Value Addition falls below Minimum then he is required to pay 1% on the shortfall in FOB value in Indian Rupee.

PROCEDURE FOR REDEMPTION OF EPCG AUTHORIZATIONS

Authorization Holder has to make an application to DGFT (as prescribed by DGFT in ANF 5B) along with the following documents :-
  1. A C.A.Certificate in a prescribed form by DGFT in Appendix 5C accompanied by a Statement giving details of Shipping Bills and eBRCs towards fulfillment of EO.
  2. Original EPCG Authorization;
  3. Self certified copies of Bill of entry
  4. Installation Certificate.

On receipt of EODC from DGFT submit all the above documents along with EODC to Customs Authorities for Cancellation of Bond/BG executed at the time of import.

Testimonials

Dear Mr. Mali,
This is to inform you that one shipment which landed in India today afternoon at 2.07 PM, got cleared from customs by your team at 5.50 PM.

We appreciate the efforts put in and great co-ordination by your import team – Mr. Sanjay/Mr. Shailendra/Ms Vrushali to clear the shipment with… Read more
Fronius India Pvt. Ltd.XX-XX-XXXX
Dear Mr. Santosh Rane
Greetings from Fronius India!
We are glad to inform you that we have successfully concluded the Year 2016 by achieving our Budget. When we look back, it brings in lot of smile & sense of Pride! J . I take this opportunity to thank you for all the smart work and dedication… Read more
Fronius India Private LimitedXX-XX-XXXX

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