Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20
The DGFT Office has issued Policy Circular No.04/2015-20 dt. 16th Dec., 2015 containing guidelines for granting Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20.
Para 5.19 of the Hand Book of Procedures of FTP 2015-20 permits re-fixation of Annual Average Export Obligation, in case the export in any sector/ product group decline by more than 5%. This implies that the sector/product group that witnessed such decline in 2014-15 as compared to 2013-14, would be entitled for such relief.
Reduction, if any, in the EO will ne 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.
The Regional Offices of DGFT, while considering requests of discharge of Export Obligation, will ensure that in case of shortfall in Export Obligation fulfillment, Policy Circulars earlier issued in terms of Para 5.11.2 of HBP 2009-14, are also considered before issuance of demand notice etc. This stipulation would also form part of Check-Sheet for the purpose of EODC.
A list of such product/ groups showing the percentage decline in exports during 2014-15 as compared to 2013-14 is Annexed.