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.

Enclosure: List of sectors/product groups which experienced a decline of more than 5% in exports in 2017-18 as compared to 2016-17 (11 pages)