EODC not necessary for selling goods made from duty-free inputs

Para 4.16 of FTP says that “advance authorisation and/or material imported under advance authorisation shall be subject to ‘Actual User’ condition.

- TNC RAJAGOPALAN

The same shall not be transferable even after completion of export obligation. However, Authorisation holder will have option to dispose of product manufactured out of duty-free input once export obligation is completed”. Our question is whether we must wait till EODC is granted before selling goods manufactured from duty free inputs imported under advance authorisation?

• I don’t think so. If the intention of the government was to make you wait till EODC is issued, the same would have been stated clearly, as in the case of EPCG scheme, where Para 5.03 of FTP clearly says that ‘imported capital goods shall be subject to Actual User condition till export obligation is completed and Export Obligation Discharge Certificate (EODC) is granted’.

In the absence of such a clear stipulation at the said