Vivek Jalan
Quick Summary
Under Customs, Policy Circular No. 10/2025-26 dated 26.02.2026 is a significant compliance update for EPCG license holders. Let's break it down into a structured, operational checklist for quick application in practice: Compliance Checklist: EO Reduction under Para 5.17 (FTP 2023) 1. Eligibilit
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FAQ :
The Export Obligation (EO) for EPCG licenses can be reduced proportionately for FY 2024-25 under Policy Circular No. 10/2025-26.
Eligibility is for sectors or product groups whose exports declined by more than 5% in FY 2024-25 compared to FY 2023-24.
The DGFT will notify Regional Authorities (RAs) of eligible sectors/product groups within 7 months of the fiscal year close, referencing Policy Circular No. 10/2025-26.
Regional Authorities will re-fix the annual average EO proportionately for FY 2024-25 and endorse this reduction on the license file and amendment sheet.
Exporters must ensure the EO reduction endorsement is reflected in their license records and confirm that the RA considers these provisions before issuing demand notices or Export Obligation Discharge (EODC).
Exporters should maintain documentation of sector decline, including the DGFT circular and their own export data, and use a check-sheet for EODC applications to ensure the Para 5.17 relief is applied.
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