Sale by eou against epcg license

Dear Ranade,

Supplies from EOU to EPCG Licence Holder are nothing to do with DTA sale entitlement. such supplies are treated as exports and entitled for NFE fulfilment. Pl. go through the below para 5.07 of Foreign Trade Policy which clarifies that such supplies are entitled for NFE fulfilment.

　5.07 Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier

A person holding an EPCG authorisation may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 7.03 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfilment of positive NFE by said EOU as provided in Para 6.09 (a) of FTP.

Regards

Surya