Relief in Annual Average Export Obligation under EPCG Scheme
Relief in Annual Average Export Obligation under EPCG Scheme – Para 5.17(a) of HBP (FTP 2023)
In accordance with Para 5.17 of the Handbook of Procedures (HBP) under the Foreign Trade Policy (FTP) 2023, relief in Annual Average Export Obligation (EO) is available to sectors experiencing a decline in exports.
The provision states that where the total exports of a particular sector or product group have fallen by more than 5% in a given financial year compared to the immediately preceding year, the Average EO for that year may be reduced proportionately. Accordingly, sectors/product groups that recorded a decline of more than 5% in exports during FY 2024–25 as compared to FY 2023–24 shall be eligible for such reduction.
A detailed list of the affected product groups, along with the percentage decline in exports, is annexed for reference.
All Regional Authorities (RAs) are instructed to revise the Annual Average EO for EPCG Authorisations pertaining to FY 2024–25, wherever applicable. The revised EO must be:
- Properly recorded in the licence file maintained by the concerned RA; and
- Reflected in the amendment sheet issued to the EPCG Authorisation holder.
Further, while processing applications for discharge of Export Obligation (EO), Regional Offices shall ensure that, in cases involving shortfall in EO fulfilment, relevant Policy Circulars issued under:
- Para 5.11.2 of HBP 2009–14
- Para 5.19 of HBP 2015–20
- Para 5.17 of FTP 2023
are duly considered before issuing any demand notice or Export Obligation Discharge Certificate (EODC). This requirement should form part of the prescribed check-sheet for EODC processing.
This is issued with the approval of the Director General of Foreign Trade.
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