Export Obligation (EO) for EPCG Licenses reduced proportionately for FY 24-25

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....xport Obligation (EO) for EPCG Licenses reduced proportionately for FY 24-25<br>By: - Vivek Jalan<br>Goods and Services Tax - GST<br>Dated:- 9-4-2026<br>Under Customs, Policy Circular No. 10/2025-26 dated 26.02.2026 is a significant compliance update for EPCG license holders. Let&#39;s break it down into a structured, operational checklist for quick application in practice: Compliance Checklist....

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....: EO Reduction under Para 5.17 (FTP 2023) 1. Eligibility Check if your sector/product group exports declined >5% in FY 2024-25 compared to FY 2023-24. If decline is continuous over consecutive years, use the year after which decline began as the base year. 2. DGFT Communication DGFT will notify Regional Authorities (RAs) of eligible sectors/product groups within 7 months of FY close....

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..... Refer to Policy Circular No. 10/2025-26 (26.02.2026) for the official list of product groups with decline percentages. 3. Action by Regional Authorities RAs will re-fix annual average EO proportionately for FY 2024-25. Reduction must be endorsed in: • License file • Amendment sheet issued to EPCG Authorisation holder 4. Exporter&#39;s Responsibility En....

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....sure EO reduction endorsement is reflected in your license records. While applying for EO discharge (EODC): • Reference Para 5.11.2 (HBP 2009-14), Para 5.19 (HBP FTP 2015-20), and Para 5.17 (FTP 2023). • Confirm RA considers these before issuing demand notice/EODC. 5. Risk Mitigation Maintain documentation of sector decline (DGFT circular + export data). Keep ....

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....a check-sheet for EODC applications to ensure Para 5.17 relief is applied. If EO shortfall exists, rely on cumulative relief provisions across past FTPs. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....