Relaxation of Export Obligation where Exports have Fallen

[DGFT Public Notice No. 36 dated 21^st January 2010]

Subject: Amendment in Para 5.11.2 of HBP Vol.I, 2009-2014

In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14 and Paragraph 1.1 of the Handbook of Procedures (Vol.1), the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures, Vol.I, 2009-2014, as amended from time to time.

2. Para 5.11.2 of HBP Vol.I is amended to read as under:

“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, 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. However, in case export decline is continuous over consecutive years, the base year for calculation of eligibility and calculation of reduction in Average Export Obligation will be taken as the year after which the exports have shown continuous decline.

3. The sectors/product groups for which this relaxation is to be allowed shall be conveyed by the DGFT to all the RAs within seven months of the end of the previous financial year, and the RAs shall re-fix the annual average EO for previous year accordingly, for exporters in that sector/product group.

This issues in public interest.