Export Decline and Refixation of EO
[DGFT Policy Circular No.
18 dated 31st January 2019]
Subject: Relief in average export obligation
in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20.
Attention is drawn to Para 5.19 of the Hand Book of Procedures of FTP
2015-20 which 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 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 2017-18 as compared to 2016-17 would be entitled for such relief.
2. A list of such sectors/product
groups showing the percentage decline in exports during
2017-18 as compared to 2016-17 is
enclosed herewith.
3. All Regional Authorities of this Directorate are requested to re-fix the annual
average export obligation for the EPCG Authorizations for the year 2017-18 accordingly. The reduction, if any, in the Export Obligation should be appropriately
endorsed in the file pertaining to the
concerned EPCG Authorisation, as also in the Amendment Sheet to be issued along with the concerned EPCG Authorisation by the Regional Authority.
4. The Regional Authorities,
while considering requests of discharge of Export Obligation, will ensure that in case of shortfall in Export Obligation fulfillment, the 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 the demand notice etc. This stipulation should also form
part of the Check- Sheet for the purpose of EODC.
5. This issues with the approval of DGFT.