6.11 (a) Deleted

(b) The licence holder under the EPCG scheme shall fulfil the export obligation over the specified period in the following proportions:

Period from the date of issue of licence Proportion of total Export obligation

Block of 1 stand 2nd year Nil
Block of 3rd and 4th year 15%
Block of 5th and 6th year 35%
Block of 7th and 8th year 50%

(c) Deleted

However, the export obligation of a particular block of year may be set off by the excess exports made in the preceding block of year.Where export obligation of any particular block of year is not fulfilled in terms of the above proportions, except in such cases where the export obligation prescribed for a particular block of years is extended by the competent authority, such licence holder shall, within 3 months from the expiry of the block of years, pay duties of customs plus 24% interest of an amount equal to that proportion of the duty leviable on the goods which bears the same proportion as the unfulfilled portion of the export obligation bears to the total export obligation.

The licence holder shall, if he fails to discharge a minimum of 25% of the export obligation prescribed for any particular block of two years for two consecutive blocks under EPCG scheme, be liable to pay forthwith, the whole of duties of customs plus 24% interest leviable on the goods imported except in such cases where the export obligation prescribed for a particular year or block of year is extended by the competent authority, However, the licences issued under the scheme upto 31.3.2000 shall be governed by provisions laid down in paragraph 6.11 as given in Handbook (Vol.1) (RE-99).