Govt extends export obligation period for select schemes till Aug 31
New Delhi, March 7
The Ministry of Commerce and Industry has announced a facilitation measure for exporters by extending the Export Obligation period for certain export promotion schemes in view of prevailing geopolitical developments impacting global shipping routes, logistics corridors, and international supply chains.
According to the Ministry of Commerce & Industry, through public notice issued on March 6, DGFT has provided for automatic extension of the Export Obligation (EO) period or Block-wise EO fulfillment period up to August 31, 2026, for specified Advance Authorisations and Export Promotion Capital Goods (EPCG) Authorisations where the EO period is expiring between March 1, 2026, and May 31, 2026.
The extension shall be granted automatically, and exporters will not be required to submit any separate application or pay any composition fee to avail the benefit. This measure has been introduced to provide additional operational flexibility to exporters facing disruptions arising from current geopolitical developments affecting global trade and logistics.
The relaxation applies to Advance Authorisations, including Advance Authorisation for Annual Requirement and Special Advance Authorisation, as well as EPCG Authorisations. The extension granted under the Public Notice will be in addition to the existing provisions under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP), which allow exporters to seek EO period extensions upon payment of prescribed composition fees.
The Regional Authorities of DGFT will verify compliance with the Export Obligation requirements at the time of issuance of the Export Obligation Discharge Certificate (EODC), closure, or regularisation of the authorisation.
Customs authorities have also been duly informed through the Public Notice to permit exports in accordance with the revised EO timelines.
This step reflects the Government's continued commitment to supporting exporters and ensuring that temporary global disruptions do not adversely impact India's export performance or compliance obligations under export promotion schemes.
— ANI
Reader Comments
As someone working in international logistics based in Mumbai, I see this daily. This extension is crucial. It prevents good exporters from being penalized for circumstances entirely beyond their control. Hope the verification process at the EODC stage is also smooth.
Good step, but it's a reactive measure. We need more proactive, long-term solutions to build resilient supply chains. Can we fast-track development of the INSTC corridor or boost coastal shipping? Dependence on volatile global routes is a constant risk for 'Make in India'.
Finally some sense! The compliance burden on small exporters is massive. Not having to file another application or pay a fee for this extension saves time, money, and mental peace. Hope such facilitative policies continue.
This shows the government is listening to exporter concerns. The key will be implementation at the ground level – ensuring all regional DGFT and customs offices are on the same page. Communication is vital.
A sensible policy from New Delhi. Global trade is facing headwinds, and such flexibility helps maintain India's credibility as a reliable trading partner. It protects export numbers and jobs in the manufacturing sector.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.