CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684

* E-mail : info@chemexcil.gov.in Web : https://chemexcil.gov.in

EPC/LIC/DGFT-EPCG                                                                                                        03/03/2020

ALL THE MEMBERS OF THE COUNCIL

EPCG

Dear Members,

The O/o Directorate General of Foreign Trade, New Delhi  has  issued Policy Circular No. 31/2015-20 dated 26th Feb 2020  regarding  Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of Foreign Trade Policy, 2015-20.

As you might be aware, Para  5.19  of the HBP,  envisages  that to provide  relief  to exporters  of those sector where  total export  in the  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 2018-19 as compared  to 2017-18  would be entitled  for such relief.

As per above said circular,  DGFT RA’s are requested  to re-fix  the annual  average  export obligation  for EPCG  Authorizations   for the year 2018-19  accordingly.    The reduction,  if any, in the export  obligation   should  be appropriately   endorsed  in  the  file pertaining   to  the  concerned   EPCG Authorization,    as  also  in  the  Amendment    Sheet  to  be  issued  along   with  the  concerned   EPCG  Authorization  by the Regional  Authority. The Regional  Authorities,   while  considering  requests  of discharge  of export  obligation  will ensure  that in case of shortfall  in export  obligation  fulfillment,  the Policy  Circulars  earlier  issued  in terms of Para 5.11.2  of HBP 2009-14  and Para 5.19 of Hand Book of Procedure  of FTP   2015-20  are also considered  before issuance  of demand  notice,  EODC,  etc. This stipulation  should  also form part of Check Sheet for the purpose  of EODC.

Members (EPCG Authorization Holders) are requested to take note and do the needful, if applicable.   The   List of sectors/product  groups which have experienced  a decline  of more than 5% in exports  in 2018-19 as compared  to 2017-18 is available for reference using below links.

http://dgft.gov.in/sites/default/files/POLICY%20CIRCULAR%2031_0.pdf

Members  may also  send their comments/ feed-back  on  our e-mail id’s:  ed@chemexcil.gov.in  &   deepak.gupta@chemexcil.gov.in.

Thanking You,

Yours faithfully,

(S. G. BHARADI)
EXECUTIVE DIRECTOR

CHEMEXCIL