• Home
  • Press Releases
  • FHRAI requests DGFT to increase Export Obligation interval for all previous EPCG licenses

News Details

08 th Apr 2022

The Federation of Hotel & Restaurant Association of India (FHRAI) has reached out to the Directorate General of Foreign Trade (DGFT) requesting them to increase the Export Obligation (EO) interval for all previous licenses. In a illustration to Santosh Kumar SarangiDirector General of Foreign Trade, Government of India, the hospitality business affiliation has requested the commerce physique to take a lenient view within the current scenario and push again the Export Promotion Capital Goods (EPCG) scheme obligations by one other 6-8 years for all resorts to permit them time to recuperate and generate international trade to fulfill their export obligations.


Talking concerning the impression of Covid-19 pandemic on the hospitality business, resorts, and associated institutions, FHRAI mentioned that there was no inbound tourism enterprise previously two years and it’ll take a few years for the sector to recuperate financial damages. “For all past EPCG licenses taken and where the expected EO period ended in February 2022 onwards, an extension of EO period to be given for another 6-8 years in view of the disastrous impact of Covid-19,” mentioned Gurbaxish Singh KohliVice President, FHRAI within the illustration.


In line with the expectations and in addition elevated room occupancy and visitor footfalls of their eating places, the business has began hiring processes. However, hoteliers additionally say discovering expertise is troublesome as a lot of those that had misplaced their jobs because of the pandemic have gone into different sectors and those that wished to proceed have discovered jobs in different properties.

Seeking quick intervention of DGFT, FHRAI additional introduced ahead one other concern confronted by hospitality business stakeholders. It mentioned that the fee made by foreigners in rupee in resorts as international trade earned for the aim of EPCG scheme to be handled as deemed export. “Hotels are providing services to foreign travelers and filling Form 21 to the police department and having a copy of the passport for their record, but the receipt of payment is made in Indian currency through the tour operators and travel agencies. In this regard, we want to request that payment made by foreigners in rupee in hotels as foreign exchange earned for the purpose of EPCG scheme to be treated as deemed export,” added Kohli.




B-82, 8th Floor, Himalaya House, 23,
K. G. Marg, New Delhi-110 001

Telephone: 011-40780780

For any queries, please write to us on or contact us on

E-mail: fhrai@fhrai.com