Re-fixation of Export Obligation for Declining Export Performance
· One Third, that is, 395 out of 1200 Four Digit HS Codes Shows more than 5% Fall in 2016-17 Over Previous Year
[Ref: Policy Circular No. 03/2015-20Dated 21.11.2017]
Subject: Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20.
Para 5.19 of the Hand Book of Procedures of FTP 2015-20 permits re-fixation of Annual Average Export Obligation, in case the export in any sector/ product group decline by more than 5%. This implies that the sector/product group that witnessed such decline in 2016-17 as compared to 2015-16, would be entitled for such relief.
2. A list of such product groups showing the percentage decline in exports during 2016-17 as compared to 2015-16 is Annexed.
3. All Regional Offices are requested to re-fix the annual average export obligation for EPCG Authorizations for the year 2016-17 .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.
4. Regional Offices, while considering requests of discharge of Export Obligation will ensure that in case of shortfall in Export Obligation fulfilment, Policy Circulars earlier issued in terms of Para 5.11.2 of HBP 2009-14 and Para 5.19 of Hand Book of Procedure of FTP 2015-20 are also considered before issuance of demand notice etc. This stipulation should also form part of Check Sheet for the purpose of EODC.
5. This issues with the approval of DGFT.