The DGFT issued Policy Circular No. 11/2024-25 dated January 21, 2025, providing relief under the EPCG Scheme by reducing the Average Export Obligation (EO) for 2023-24, as per para 5.17(a) of the HBP of FTP 2023. This applies to sectors/product groups where exports declined by over 5% in 2023-24 compared to 2022-23. Regional Authorities must re-fix the Annual Average EO for EPCG Authorizations and update records accordingly. While processing EO discharge requests, Regional Offices must also consider past Policy Circulars under previous FTPs. This ensures comprehensive compliance before issuing demand notices or Export Obligation Discharge Certificates (EODC).
The para 5.17 of the HBP of the FTP, 2023 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 (EO) 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 2023-24 as compared to 2022-23 would be entitled for such relief.
A list of product groups showing the percentage decline in exports during 2023-24 as compared to 2022-23 is Annexed.
All Regional Authorities are requested to re-fix the Annual Average EO for EPCG Authorizations for the year 2023-24 accordingly. The reduction, if any, in the EO should be appropriately endorsed in the licence file of the Office of Regional Authority and also in the amendment sheet to be issued to the EPCG Authorisation holder.
Regional Offices while considering requests of discharge of EO will ensure that in case of shortfall in EO fulfilment, Policy Circulars issued earlier in terms of Para 5.11.2 of HBP 2009-14, Para 5.19 of HBP of FTP 2015-20 and Para 5.17 of FTP, 2023 are also considered before issuance of demand notice, EODC etc. This stipulation should be part of Check-Sheet for the purpose of EODC.
The Policy Circular Along the Annexure-I can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/01/Policy-Circular-No.-11-2024-25-dated-21.01.2025.pdf