DGFT on January 20, 2023 issued a public notice no. 53/2015-20 to provide the big relief to EPCG authorisation holders in terms of Export Obligation Period as well as Average Annual Export Obligation required to be maintained by the EPCG Authorisation holder.
A new sub – para 5.13(d) is added after para 5.13(c) of the Handbook of Procedures which specifies the, “For the years 2020-21 and 2021-22, no Average Export Obligation is required to be maintained for EPCG Authorisations issued for Hotel, Health Care and Education Sectors.” which means that a one time relaxation is provided to EPCG Authorisation holders working in Hotel, Health Care and Education Sectors and they need not required to maintain the average export obligation for the said period as specified in the public notice.
Further, Public Notice also added a sub-paras 5.17(g) and 5.17(h) after para 5.17(f) of Handbook of Procedures.
As an effect of newly added sub paras, relaxation is provided to EPCG Authorisation holders in terms of Export Obligation Period, where Exporters belongs to Hotels, Healthcare and Educational sectors Export obligation extended for the duration equivalent to number of days falls between 01.02.2020 and 31.03.2022 without paying any composition fee. however in case of Authorisation holders other than the authorisation holders as said above has been provided by an option to take the benefit of Export Obligation period subject to payment of composition fee of 5% of balance export obligation for the number of days falls in between 01.08.2021 to 31.03.2022, however no composition fee is required to be paid for the period 01.02.2020 to 31.07.2021.
It is also clarified that if any Authorisation Holder already has obtained the E.O Extension on payment of composition fee, the refund of composition fee would not be permitted. In addition, any penalties, duties and taxes already paid would also not be refunded.
Detailed copy of original Public Notice is enclosed for the reference purpose