Relief in Average Export Obligation for EPCG authorizations for the FY 2019-20 & 2020-21

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The DGFT issued Policy Circular No. 37/2015-2020 dated September 10, 2021 w.r.t. relief in Average Export Obligation in terms of the para 5.19 of Hand Book of Procedures (“HBP”) of Foreign Trade Policy (“FTP”) 2015-20.

The para 5.19 of the HBP of the FTP 2015-20 (extended upto September 30, 2021) envisages that to provide relief to exporters of those sectors where total exports in that sector/product group has declined by more than 5% as compared to the previous year. the Average Export Obligation for the year may be reduced proportionate to the reduction in exports of that particular sector/product group during the relevant year as against the preceding year. This implies that the sector/product group that witnessed such decline in 2019-20 as compared to 2018-19 and 2020-21 as compared to 2019-20 would be entitled for such relief. Accordingly, the following lists are annexed:-

Annexure-I – A list of such product groups showing the percentage decline in exports during 2019-20 as compared to 2018-19.

Annexure-II – A list of such product groups showing the percentage decline in exports during 2020-21 as compared to 2019-20.

All Regional Offices are requested to re-fix the Annual average export obligation for EPCG Authorizations for the years 2019-20 and 2020-21 accordingly. Reduction, if any, in the FO should be appropriately endorsed in the licence file of the Office of RA as also in the amendment sheet to be issued to the EPCO Authorisation holder.

Regional Offices while considering requests of discharge of Export Obligation will ensure that in case of shortfall in Export Obligation fulfilment, Policy Circulars issued earlier in terms of Para 5.11.2 of HBP 2009-14 and Pam 5.19 of HBP of FTP 2015-20 are also considered before issuance of demand notice, EODC, etc. This stipulation should be part of the Check-Sheet for the purpose of EODC.

The Circular along with Annexures can be accessed at: https://content.dgft.gov.in/Website/dgftprod/7ae54c57-3b36-4022-8a5d-0a58390738e9/Govt%20of%20India_0001.pdf

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