Government of India Extends Export Obligation Deadline to Aug 31, 2026

The Ministry of Commerce and Industry has announced a new measure to assist exporters by extending the Export Obligation (EO) compliance period for specific export promotion initiatives. This decision comes in light of ongoing geopolitical events that have been affecting global shipping routes, logistics, and supply chains.

The Directorate General of Foreign Trade (DGFT) issued a public notice on March 6, stating that the EO period, or the Block-wise EO fulfillment window, will now be automatically extended until August 31, 2026, for certain Advance Authorisations and Export Promotion Capital Goods (EPCG) Authorisations. This extension applies to authorisations that would otherwise be set to expire between March 1, 2026, and May 31, 2026.

Exporters will benefit from this automatic extension without the need to submit additional applications or pay any composition fees. The measure is designed to grant exporters the necessary flexibility as they navigate the challenges posed by the current international climate affecting logistics and trade.

The relaxation covers various types of Advance Authorisations, including the Advance Authorisation for Annual Requirement and Special Advance Authorisation, along with EPCG Authorisations. This newly announced extension is supplementary to existing provisions mentioned in the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP), which previously allowed exporters to request EO period extensions by paying the designated composition fees.

The Regional Authorities of the DGFT will be responsible for verifying compliance with the Export Obligation criteria during the issuance of Export Obligation Discharge Certificates (EODC) or upon the conclusion and regularisation of the respective authorisations. Additionally, customs authorities have been notified to facilitate exports in line with the updated EO timelines.

This initiative underscores the government’s dedication to support exporters amidst global challenges, aiming to prevent these disturbances from hindering India’s export capabilities or violating compliance within export promotion schemes.

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