Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued Policy Circular No. 11/2024-25 on January 21, 2025, providing relief under the Export Promotion Capital Goods (EPCG) Scheme. As per Paragraph 5.17(a) of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2023, exporters in sectors where total exports declined by more than 5% in 2023-24 compared to 2022-23 are eligible for a proportional reduction in Average Export Obligation (EO).
The directive requires Regional Authorities to adjust the Annual Average EO for EPCG Authorizations for 2023-24 based on this decline. Any reductions must be updated in the relevant license files and amendment sheets for EPCG authorization holders. Additionally, while processing EO discharge requests, Regional Offices are instructed to consider previous policy circulars under HBP provisions from 2009-14, 2015-20, and 2023 before issuing demand notices or Export Obligation Discharge Certificates (EODC).
Government of India
Ministry of Commerce and Industry
Department of Commerce
(Directorate General of Foreign Trade)
Vanijya Bhawan, New Delhi
Policy Circular No. 11/2024-25-DGFT| Dated 21th January, 2025
To,
All Regional Authorities of DGFT/
All Customs Authorities
Subject: EPCG Scheme – Relief in Average EO in terms of the para 5.17(a) of Hand Book of Procedures (HBP) of FTP, 2023.
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.
2. A list of product groups showing the percentage decline in exports during 2023-24 as compared to 2022-23 is
3. All Regional Authorities are requested to re-fix the Annual Average EO for EPCG Authorizations for the year 2023-24 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.
4. 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.
5. This issues with the approval of Director General of Foreign Trade.
Encl: As mentioned above (Page 1-19).
(Randheep Thakur)
Joint Director General of Foreign Trade
Tel. No. 011-2303 8731
E-mail: randheep.thakur@gov.in
(Issued from F. No. 18/61/AM-25/P-5)
