DGFT: The DGFT has issued a Policy Circular to provide relief under the EPCG Scheme for exporters in sectors where export performance has declined by more than 5% compared to the previous year (2022-23)(22.01.2025)

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DGFT:

The DGFT has issued a Policy Circular to provide relief under the EPCG Scheme for exporters in sectors where export performance has declined by more than 5% compared to the previous year (2022-23). According to Para 5.17(a) of the Hand Book of Procedures (HBP) for FTP 2023, the Average Export Obligation (EO) for affected sectors/product groups may be proportionally reduced to match the decline in exports.

Key points:

  1. A list of product groups showing a decline in exports during 2023-24 compared to 2022-23 is attached.
  2. Regional Authorities are instructed to adjust the Annual Average EO for the relevant EPCG authorizations based on these reductions.
  3. In case of EO shortfalls, past policy circulars should be considered before issuing demand notices or EODCs (Export Obligation Discharge Certificates).
  4. The circular aims to provide financial relief to exporters facing adverse export conditions in specific sectors.

[Policy Circular No. 11/2024-25 dated 21.01.205]