The Directorate General of Foreign Trade (DGFT) on February 22, 2024, issued the notification regarding the Relief in Average Export Obligation in terms of para 5.17(a) of Hand Book of Procedures (HBP) of FTP, 2023.
The following has been stated namely: -
• The para 5.17 of the Handbook of Procedures of the FTP, 2023 states that to provide relief to exporters where total exports in that sector/product group have declined by more than 5% as compared to the previous year, the Average Export Obligation (EO) 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.
• A list of product groups showing the percentage decline in exports during 2022-23 as compared to 2021-22 is attached to Annexure-I.
• All Regional Authorities are requested to re-fix the Annual Average EO for EPCG Authorizations for the year 2022-23 accordingly. Reduction, if any, in the EO should be appropriately endorsed in the licence file of the Office of RA as also in the amendment sheet to be issued to the EPCG Authorisation holder.
[Policy Circular No. 10/2023-2024]
