Circular No. ES/149/2021-22 14th September, 2021
To: Members of the Council
Sub: Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of Foreign Trade Policy, 2015-20
Para 5.19 of HBP of the FTP 2015-20 (extended upto 30.9.2021) 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 preceeding year. This implies that the sector/ product group that witnessed such decline in 2019-20 as compared to 2018-19 and 2020-21 as compared to 2019-20 would be entitled for such relief. Accordingly, following lists are annexed:-
Annexure- I: List of such product groups showing the percentage decline in exports during 2019-20 as compared to 2018-19.
Annexure- II: List of such product groups showing the percentage decline in exports during 2020-21 as compared to 2019-20
DGFT has requested all its Regional Offices to re-fix the Annual Average Export Obligation for EPCG Authorizations for 2019-20 and 2020-21 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.
Regional Offices while considering requests of discharge of Export Obligation will ensure that in case of shortfall in Export Obligation fulfilment, Policy circulars issued earlier in terms of Para 5.11.2 of HBP 2009-14 and Para 5.19 of HBP of FTP 2015-20 are also considered before issuance of demand notice, EODC etc. This stipulation should be part of the Check Sheet for the purpose of EODC.
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