In the textile-apparel sector, several products under chapters 60, 61 and 62 have recorded decline of more than 5 per cent in 2023-24 over the previous year.
EPCG scheme is a programme that allows exporters to import capital goods at a reduced customs duty rate. The scheme’s goal is to help India’s manufacturing industry become more competitive by making it easier to import capital goods for production. Under the scheme, exporters have export obligations to meet out in the following years.
According to the circular issued by the Director General of Foreign Trade (DGFT) on January 21, 2025, all regional authorities have to re-fix annual average export obligations for EPCG authorisations for the year 2023-24 accordingly. The circular has been sent to DGFT’s regional offices and customs authorities
Regional offices, while considering requests of reduction in the obligation, will ensure that in case of shortfall in EO fulfilment, policy circulars issued earlier should also be considered before issuance of demand notice.
Textile fibre, fabric and garments under the certain chapters had witnessed fall up to 93 per cent in fiscal 2023-24 over the fiscal 2022-23. Therefore, textile exporters will also get relief by the decision.
ALCHEMPro News Desk (KUL)
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