DGFT Announces EPCG Relief for Exporters as 450+ Product Groups See Over 5% Export Decline [Read Circular]
DGFT grants EPCG relief to exporters as over 450 product groups witness export decline exceeding 5% in FY 2023–24.
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The Directorate General of Foreign Trade (DGFT) issued Policy Circular No. 11/2024-25 dated January 21, 2025, granting relief under the Export Promotion Capital Goods (EPCG) Scheme to exporters facing challenges in meeting export obligations due to a substantial fall in overseas demand across several product categories. According to the circular, over 450 product groups recorded a decline...
The Directorate General of Foreign Trade (DGFT) issued Policy Circular No. 11/2024-25 dated January 21, 2025, granting relief under the Export Promotion Capital Goods (EPCG) Scheme to exporters facing challenges in meeting export obligations due to a substantial fall in overseas demand across several product categories.
According to the circular, over 450 product groups recorded a decline of more than 5% in export value during FY 2023–24 compared to the previous year. In response, the DGFT has allowed for a proportionate reduction in export obligation (EO) for EPCG authorization holders whose goods fall under the affected categories.
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The EPCG Scheme allows the import of capital goods at concessional customs duties, subject to a commitment to export goods or services worth six times the duty saved over a specified period. However, fulfilling this commitment becomes difficult when market conditions lead to a downturn in export performance.
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The DGFT has provided Annexure-I listing the product groups and their corresponding export data. Categories that witnessed steep declines include agricultural produce, marine products, processed food, minerals, chemicals, engineering goods, textiles, and electronics.
For Example:
- Wheat (HS Code 1001) exports fell by 96.27%
- Coke and Semi-Coke (HS Code 2704) saw a 76.6% drop
- Electronic Integrated Circuits (HS Code 8542) declined by 43.18%
- Diamonds (HS Code 7102) dropped by 26.45%
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The below-attached policy circular contains the full list of product categories with export declines. Exporters whose EPCG licenses cover these product groups can apply for relief, ensuring that their EO is adjusted in line with the decline in global demand.
To Read the full text of the Circular CLICK HERE
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