Policy Circular No. 10/2025-26, Dated 26-02-2026
The Directorate General of Foreign Trade (DGFT) has issued a Policy Circular providing for a proportionate reduction in the Annual Average Export Obligation (EO) for EPCG Authorisations for the year 2024–25. The relief has been granted in accordance with Para 5.17(a) of the Handbook of Procedures (HBP), 2023.
1. Eligibility for Export Obligation Relief
The reduction in export obligation is available to sectors or product groups where exports have declined by more than 5% during 2024–25 as compared to 2023–24.
This measure aims to provide relief to exporters operating in sectors that have experienced a significant contraction in export performance during the relevant financial year.
2. Re-fixation of Export Obligation
DGFT has directed the Regional Authorities (RAs) to re-fix the Annual Average Export Obligation for eligible EPCG authorisation holders.
The re-fixation will be carried out on a proportionate basis, reflecting the extent of decline in exports for the concerned sector or product group.
3. Objective of the Circular
The circular seeks to provide flexibility and support to exporters facing adverse export trends by adjusting their export obligation requirements under the Export Promotion Capital Goods (EPCG) Scheme.
By allowing proportionate reduction in EO, the measure helps ensure that exporters are not unduly burdened with export commitments during periods of sectoral downturn.
