5.16 — Extension in Export Obligation Period

• (a) Extension in Export Obligation Period of EPCG authorisation issued prior to Notification of Foreign Trade Policy 2023 shall be governed by relevant provisions of HBP applicable on the date of issue of authorisation.

• (b) In case of extension of Export obligation period beyond 6 years, two extensions, from date of expiry, of one year each or two years in one go at the choice of authorisation holder, may be considered by RA concerned with composition fee as under:

No refund of earlier paid Composition Fee shall be admissible.

• (c) Request for extension in EO Period shall be made to RA concerned within 6 months from the date of expiry of original EO Period. However, RA may consider the request for extension received after 6 months, but within the extendable validity of EO period, with a late fee of Rs. 10,000/-. The request for extension for regularisation purpose, from 6th to 8th year, may also be considered after expiry of EO period on payment of late fee of Rs. 15,000/-. This fee is in addition to the composition fee that may be payable on account of shortfall in export obligation. However, EO extension, beyond 8 years from date of issue of authorisation, shall not be allowed by RA under this provision.

• (d) Notwithstanding sub-para (a) above, sub-paras (b) and (c) above shall also be applicable for authorisations issued under FTP (2015-20).

• (e) For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in block-wise/EO period and/or regularisation of exports already made, the applicable Composition Fee shall be as under :-

No refund of earlier paid Composition Fee shall be admissible.

• i. Para 5.16(b) amended vide Public Notice No. 15/2024-25 dated 25.07.2024 ii. Para 5.16(e) added vide Public Notice No. 15/2024-25 dated 25.07.2024.

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• 5.17 Relief in Average Export Obligation

• (a) To provide relief to exporters of those sectors where total exports in that sector/product group has declined by more than 5% as compared to the previous year, average export obligation for the year may be reduced proportionate to reduction in exports of that particular sector/product group during the relevant year as against the preceding year. However, in case export decline is continuous over consecutive years, the base year for calculation of eligibility and calculation of reduction in average export obligation will be taken as the year after which the exports have shown continuous decline.

• (b) The sectors /product groups for which this relaxation is to be allowed shall be conveyed by the DGFT to all the RAs within seven months of the end of the previous financial year and the RAs shall re-fix the annual average EO for previous year accordingly for exporters in that sector/ product group.