Sub: EPCG Scheme - Relief in Average EO

Dear Sir / Madam,

DGFT (Directorate General of Foreign Trade) has issued Policy Circular No. 10/2025–26 dated February 26, 2026  to allow reduction in the Average Export Obligation (EO) under the EPCG scheme for the year 2024–25 for those  sectors or product groups where exports have declined by more than 5% compared to 2023–24 as a measure to provide relief to the exporters.

The Average EO will be reduced proportionately in line with the decline in exports of the respective sector/product group.

The above Policy Circular also consists of a List of items (HS Code- wise) where there is a decline in exports by a minimum 5% and are eligible for reduction in the Average Export Obligation.

This list includes items of Manmade Fiber Textiles and Technical Textiles.

Exporters are required to approach the Regional Authorities for re-fixation of the Average Export Obligation.

A copy of Policy Circular No. 10/2025–26 dated February 26, 2026 is enclosed herewith for your information (Click to Download).

You are requested to please go through the Policy Circular carefully and do the needful.

In case, you need any assistance or guidance please get in touch with us and we shall be glad to assist you.

Thanking You

A. Ravi Kumar
Executive Director