Have problems fulfilling your Export Promotion Capital Goods (EPCG) export obligations? Kireeti Consultants offers professional licensing and documentation for EPCG Surrender, enabling you to gracefully close out licenses without full penalties. We handle the paperwork in paying proportionate duties on imported machinery and raw materials, freeing your import-export business for new opportunities while minimizing financial hits.
EPCG Surrender refers to the inability of the exporter to fulfill export obligations due to market fluctuations, raw material deficiency, or changes in business strategy. Instead of paying 5x duty for defaults, surrender provides an opportunity to pay customs duty proportionate to shortfalls in meeting obligations, usually 50% less than full forfeiture. Our team prepares detailed calculations, pro-rata duty assessments, and DGFT submissions for machinery like CNC lathes, textile machinery, or packaging equipment imported duty-free for raw materials processing.
The process involves license surrender requests, inventory verification of imported capital goods, export performance proofs, and bank guarantee releases. Be it heavy machinery imported from China for manufacturing exportable goods out of steel raw material or plastic polymers, meant to be exported to Africa and Europe, we negotiate the best surrender terms possible, including partial redemptions and asset disposal approvals.
We also undertake regularization, compositional changes, and technology up-gradation before surrender. The services include payment of duty composition through ICEGATE, appeal filing, and strategy on fresh licenses post-surrender. Ideal for import-export firms that are recalibrating their machinery investments in view of volatile raw material prices.