New Delhi, May 23 (KNN) The Directorate General of Foreign Trade (DGFT) has granted condonation from non-maintenance of Annual Average in some years offset by excess exports in other year or years in respect of Export Promotion Capital Goods (EPCG) authorisations.
Condonation, or condonance may be made when an accuser has previously forgiven or condoned (in some way or at some level supported) the act about which they are complaining.
DGFT has inserted a new provision in the Hand Book of Procedures 2015-20. After para 5.19, a new para 5.19A be inserted as under 5.19A.
DGFT, in a notification said, “The excess exports done towards the average export obligation fulfilment of an EPCG authorization during a year can be used to offset any shortfall in the Average EO done in other year(s) of the EO period or the block period as the case may be provided Average EO imposed is maintained on an overall basis, within the block period or the EO period as applicable.”
According to Para 5.19 of HBP: 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 refix the annual average EO for previous year accordingly for exporters in that sector / product group.
Source: knnindia.co.in