Relief in Average Export Obligation in terms of the para 5.19 of Hand Book of Procedures (HBP) of FTP 2015-20- (Ministry of Commerce and Industry) (17 Nov 2022)
1. The para 5.19 of the HBP of the FTP 2015-20 (extended upto 31.03.2023) 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 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 2021-22 as compared 2020-21 would be entitled for such relief. Accordingly, the following list is annexed:-
Annexure-I-A list of such product groups showing the percentage decline in exports during 2021-22 as compared to 2020-21.
2. All Regional Offices arc requested to re-fix the Annual average export obligation for EPCG Authorizations for the year 2021-22 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.
3. 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 Check-Sheet for the purpose of EODC.
4. This issues with the approval of Director General of Foreign Trade.
Tags : RELIEF EXPORT OBLIGATION FTP