Appendix -5E - COMPUTATION OF ANNUAL AVERAGE EXPORT OBLIGATION UNDER EPCG SCHEME (PARA 5.04 (b) OF FOREIGN TRADE POLICY 2015-20 READ WITH PARA 5.12 OF HBP 2015-20). - Foreign Trade Procedure 2015-2020 (From 5-12-2017 to 31-3-2023) Revised

1 [APPENDIX - 5E COMPUTATION OF ANNUAL AVERAGE EXPORT OBLIGATION UNDER EPCG SCHEME (PARA 5.04 (b) OF FOREIGN TRADE POLICY 2015-20 READ WITH PARA 5.12 OF HBP 2015-20). The average Export Obligation under EPCG scheme shall be fixed as under: (i) In respect of EPCG authorizations issued to an applicant during a licensing year, the Average Export Obligation will be same for same and similar products. While calculating Average Export Obligation, exports counted/being counted for fulfilling specific EO against EPCG Authorisations within valid EO Period (whether original or extended) that have been made in the preceding 3 years will not be taken into account. (ii) If an applicant has been in existence for more than 3 years, the exports in each of the past 3 years (even if for some years, it may be zero) are aggregated and the aggregate export is divided by 3. (iii) If an applicant has been in existence for less than 3 years, the denominator in the above calculation will be the number of year and not 3. The following table illustrates the fixation of average Export Obligation (in case a firm/company has applied for EPCG authorizations in the year 2017-18). Firm/Company in existence for more than 1 year but less than 2 years Year 1 (2016-17) Year 2 (2015-2016) Average Export Obligation Exports Nil Not Applicable Nil x Not Applicable X/1 Firm/Company in existence for more than 2 year but less than 3 years Year 1 (2016-17) Year 2 (2015-2016) Average Export Obligation Exports Nil Nil Nil Nil x X/2 x Y X-Y/2] ---------------------- Notes:- 1. Inserted vide Public Notice No. 47/2015-2020, dated 06-12-2017