The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, extended the export obligation period for certain Export Promotion Schemes. This extension aims to support exporters affected by geopolitical disruptions impacting global shipping routes, logistics corridors, and supply chains.
Key Provision of the Extension
- Key Features of the Relaxation
- Automatic extension will be granted.
- Exporters do not need to submit any application.
- No composition fee is required to avail the extension.
- Applicable to Authorisations: The extension applies to:
- Advance Authorisation Scheme
- Advance Authorisation for Annual Requirement
- Special Advance Authorisation
- Export Promotion Capital Goods Scheme (EPCG)
- Eligibility Condition: The benefit applies where the EO period is expiring between 1 March 2026 and 31 May 2026.
- Relation with Existing Provisions: The extension is in addition to existing provisions under the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP), which allow exporters to apply for EO extensions by paying prescribed composition fees.
- Compliance and Verification: Regional Authorities of DGFT will verify compliance at the time of
- Issuance of Export Obligation Discharge Certificate (EODC)
- Closure or regularisation of authorisations.
- Customs authorities have also been informed to allow exports as per the revised EO timelines.
Significance
- Support to Exporters: Provides relief to exporters affected by global geopolitical disruptions.
- Supply Chain Flexibility: Helps exporters manage delays in shipping and logistics.
- Maintaining Export Momentum: Prevents compliance failures due to temporary global disruptions.
- Trade Facilitation: Simplifies procedures through automatic extension without application or fee.