NEWS BRIEFS
Policy Circular No. 31/2015-20 Dated 26th Feb, 2020
Subject: EPCG Scheme - Relief in Average Export Obligation during 2018-19
DGFT has issued Policy Circular No. 31/2015-20 dated 26.2.2020 according to which, exports required to be fulfilled
against the Average Export Performance in 2018-19 will be reduced by the Regional offices of DGFT in the case of those
export products , exports of which had declined by more than 5% in 2018-19 as compared to 2017-18. The reduction will be
granted proportionate to the decline in exports.
Textiles products covered under the following HS codes are covered in the list of export products that are eligible for the
reduction in AEP: 5110, 5405, 5406, 5904, 6113, 5516, 5113, 5504, 5302, 5202, 6207, 5908, 5307, 5108, 5512 ,5310, 5404,
5907, 6307, 6202, 6217, 5106, 6104, 6208, 5515, 5803.
"Attention is drawn to Para 5.19 of the Hand Book of Procedures of Foreign Trade Policy (FTP), 2015-20 which 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,"
according to the Policy Circular No. 31/2015-20 Dated 26th Feb, 2020.
"All Regional Authorities of this Directorate are requested to re-fix the annual average export obligation for EPCG Authori-
zations 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 Authorisation, as also in the Amendment Sheet to be issued along with the
concerned EPCG Authorisation by the Regional Authority."
business with China. In seeking alternate markets, there-
fore, the Indian exporters of cotton yarn need policy sup-
port in view of the preferential tariff arrangements enjoyed
by few of our competing countries. Also, there was a need
to focus on specific products with potential for exponen-tial growth supported by the much-required policy thrust.
While there has been a steady growth in the domestic
market, exports have stagnated during the last four years.
China has not only cut down its production of textile prod-
ucts but has also started outsourcing thus creating a huge
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