Clubbing of EPCG Licenses Guide

In global trade, streamlining operations and compliance is crucial for exporters. Clubbing Export Promotion Capital Goods (EPCG) Authorizations is a strategic approach that simplifies export obligations by consolidating multiple authorizations.

This blog will cover the essentials of EPCG Authorization clubbing, including eligibility, procedural steps, combined export obligations, and the impact on the Export Obligation Period. We'll also explore how to determine average export obligations and the conditions for clubbing after the obligation period ends.

What is the eligibility criteria for Clubbing of EPCG Authorization?

Clubbing of two or more authorizations are allowed if all the authorizations are issued by the same Regional Office and only when export products endorsed on all authorizations are same/similar.

What is the procedure to be followed for Clubbing of EPCG Authorizations?

EPCG Clubbing Application need to be filed in Form ANF 5C to the concerned Regional Authority.

What would be the export obligation after clubbing?

Duty saved amount of all authorizations sought to be clubbed will be considered and export obligation will be calculated accordingly.

What will be the Export Obligation Period for Clubbed Authorizations

Export Obligation Period for clubbed authorizations shall be reckoned from the first authorization issue date.

How Average Export Obligation will be calculated in case of clubbing of EPCG Authorizations?

Average Export Obligation would be highest of the average export obligations on individual authorizations sought to be clubbed.

Is clubbing allowed even if the Export Obligation Period (EOP) is over?

Generally, Clubbing is allowed only during valid EOP including extended EOP. However, in case EOP of all the authorizations is over, then clubbing may be clubbed only for regularization purpose and thus, no further exports will be allowed. Also, all such authorizations must be issued under the same policy period.

Conclusion

In conclusion, clubbing EPCG Authorizations is a strategic tool that helps exporters simplify and manage their export obligations more effectively. By understanding the eligibility criteria, procedural steps, and the way combined obligations are calculated, exporters can optimize their trade processes and ensure compliance with ease. This approach is invaluable for maintaining competitiveness and efficiency in the ever-evolving landscape of global trade.