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Update on Sector Specific Relief under EPCG Scheme

  • Writer: shahmadhura
    shahmadhura
  • Apr 28
  • 1 min read


DGFT, vide Policy Circular No. 10/2025‑26 dated 26 February 2026, has provided relief in respect of Average Export Obligation (‘AEO’) under the EPCG Scheme due to a decline in exports, in accordance with Para 5.17(a) of the Handbook of Procedures. The key points are as follows:


  • Proportionate reduction in AEO for sectors/product groups where total exports have declined by more than 5% in 2024‑25 as compared to 2023‑24.


  • The list of affected product groups along with the percentage decline in exports has been annexed to the circular, as enclosed here.


  • Regional Authorities have been requested to re‑fix the annual AEO for EPCG authorizations for 2024‑25 and endorse reductions in license files and amendment sheets.


  • Regional Offices have been directed to consider earlier policy circulars issued under previous Foreign Trade Policies (FTPs) before issuing demand notices, EODCs, etc., while processing requests for Export Obligation Discharge.



 
 
 

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