{"id":8191,"date":"2026-03-04T10:57:24","date_gmt":"2026-03-04T05:27:24","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8191"},"modified":"2026-03-04T10:57:24","modified_gmt":"2026-03-04T05:27:24","slug":"dgft-allows-proportionate-eo-reduction-under-epcg","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/dgft-allows-proportionate-eo-reduction-under-epcg","title":{"rendered":"DGFT Allows Proportionate EO Reduction under EPCG for FY 2024-25"},"content":{"rendered":"

Policy Circular No. 10\/2025-26<\/a>, Dated 26-02-2026<\/p>\n

The Directorate General of Foreign Trade (DGFT) has issued a Policy Circular<\/strong> providing for a proportionate reduction in the Annual Average Export Obligation (EO)<\/strong> for EPCG Authorisations for the year 2024\u201325<\/strong>. The relief has been granted in accordance with Para 5.17(a) of the Handbook of Procedures (HBP), 2023<\/strong>.<\/p>\n

1. Eligibility for Export Obligation Relief<\/h2>\n

The reduction in export obligation is available to sectors or product groups where exports have declined by more than 5% during 2024\u201325 as compared to 2023\u201324<\/strong>.<\/p>\n

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.<\/p>\n

2. Re-fixation of Export Obligation<\/h2>\n

DGFT has directed the Regional Authorities (RAs)<\/strong> to re-fix the Annual Average Export Obligation<\/strong> for eligible EPCG authorisation holders.<\/p>\n

The re-fixation will be carried out on a proportionate basis<\/strong>, reflecting the extent of decline in exports for the concerned sector or product group.<\/p>\n

3. Objective of the Circular<\/h2>\n

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<\/strong>.<\/p>\n

By allowing proportionate reduction in EO, the measure helps ensure that exporters are not unduly burdened with export commitments during periods of sectoral downturn.<\/p>\n","protected":false},"excerpt":{"rendered":"

Policy Circular No. 10\/2025-26, Dated 26-02-2026 The Directorate General of Foreign Trade…<\/p>\n","protected":false},"author":19,"featured_media":8194,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52,181,54],"tags":[],"class_list":["post-8191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-trade-policy","category-news-foreign-trade-policy","category-ftp-statutory-scope"],"yoast_head":"\nDGFT Allows Proportionate EO Reduction under EPCG for FY 2024-25<\/title>\n<meta name=\"description\" content=\"DGFT permits proportionate reduction in average export obligation under EPCG for sectors with over 5% export decline in FY 2024-25.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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