DGFT Extends Export Obligation Period for QCO-Regulated Imports under Advance Authorisation

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Dated: 29.08.2025

DGFT Extends Export Obligation Period for QCO-Regulated Imports under Advance Authorisation

In a significant move to facilitate trade and enhance ease of doing business, the Government of India has announced an amendment to the Foreign Trade Policy (FTP), 2023. Through Notification No. 28/2025-26, dated 28 August 2025, the Directorate General of Foreign Trade (DGFT) has extended the Export Obligation (EO) period for Advance Authorisation holders importing inputs subjected to mandatory Quality Control Orders (QCOs). This change is expected to provide much-needed relief to exporters and boost compliance with quality standards.

Key Amendment

The amendment revises Para 2.03(A)(i)(g) of the FTP, 2023. Previously, the EO period for imports of chemical products under mandatory QCOs was restricted to 180 days (6 months) from the date of clearance of import consignments. With the new notification, the EO period has been extended to 18 months, aligning it with the general provisions outlined in Para 4.40 of the Handbook of Procedures.

Impact of the Notification

This extension of the EO period is a welcome change for Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs). It provides exporters with additional time to fulfill their export obligations, thereby reducing operational pressure and ensuring better compliance with quality standards mandated by the Department of Chemicals & Petrochemicals (DCPC).

Benefits for Stakeholders

Ease of Compliance: The extended timeline allows businesses to plan their export activities more effectively, ensuring adherence to QCOs without compromising on deadlines.

Boost to Exporters: Exporters can now focus on meeting international quality standards while leveraging the benefits of Advance Authorisation schemes.

Support for Chemical Industry: The amendment particularly benefits the chemical sector, which is subject to stringent quality control measures.

Conclusion

The Government’s decision to extend the EO period under Advance Authorisation reflects its commitment to supporting exporters and promoting trade. By aligning the EO period with the Handbook of Procedures, this amendment simplifies processes and enhances flexibility for businesses. Exporters are encouraged to take advantage of this extended timeline to meet their obligations and contribute to India’s growing trade ecosystem.

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Source: DGFT

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