FTP - Decline in Exports - Re-fixation of Annual Average Export Obligation
PARA 5.11.2 of the Hand Book of Procedure Volume - 1 (HBP V-I) 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 for the sector/product group that witnessed such decline in 2010-11 as compared to 2009-10, would be entitled for such relief.
DGFT has published a list of such product groups showing the percentage decline in exports during 2010-11 as compared to 2009-10.
All Regional Offices are to re-fix the annual average export obligation for EPCG Authorizations for the year 2010-11 accordingly and to ensure that there is a mention on the Licence File, as well as on the Amendment Sheet, if there is any reduction in the Annual Average Export Obligation on the basis of this Circular.
Regional Offices while considering requests of discharge of Export Obligation are to ensure that in case of shortfall of Export Obligation Policy Circulars issued in terms of Para 5.11.2 of HBP 2009-14 (RE 2010) are also considered before issuance of demand notice etc. This stipulation should also form part of Check-Sheet for the purpose of EODC.
DGFT Policy Circular No. 53/(RE-2010)/2009-14, Dated: February 23, 2012