Extension of Export Obligation Period for Advance and EPCG Authorisations

In a significant move to support exporters amidst prevailing geopolitical developments and disruptions in global trade and logistics, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has announced an automatic extension of the Export Obligation (EO) period for specified Advance Authorisations and EPCG Authorisations. This extension is aimed at mitigating challenges posed by international shipping route disruptions and supply chain constraints.

Key Highlights of the Public Notice 

On March 6, 2026, the DGFT issued Public Notice No. 51/2026, introducing amendments to the Handbook of Procedures (HBP), 2023. The notice outlines the following key provisions:

Automatic Extension of EO Period:
- For Advance Authorisations (including Advance Authorisation for Annual Requirement and Special Advance Authorisation) with EO periods expiring between March 1, 2026, and May 31, 2026, the EO period is automatically extended up to August 31, 2026.
- For EPCG Authorisations, the Block-wise EO period expiring between March 1, 2026, and May 31, 2026, is also automatically extended up to August 31, 2026.
No Additional Application or Fees:
- Exporters are not required to submit a separate application, pay a composition fee, or request amendments to avail of this automatic extension. This simplifies the process and reduces administrative burdens for exporters.
Refund of Composition Fee Not Permitted:
- If an Advance Authorisation or EPCG Authorisation holder has already obtained an EO period extension by paying a composition fee, they will not be eligible for a refund of the fee.
Compliance and Monitoring:
- Customs authorities will allow exports in accordance with the extended EO period.
- The Regional Authorities (RA) will examine compliance with the EO provisions during the issuance of the Export Obligation Discharge Certificate (EODC), closure, or regularisation of the authorisation.

Effect of the Public Notice 

The automatic extension of the EO period is a proactive measure to address the challenges faced by exporters due to geopolitical developments affecting international shipping routes and global supply chains. By extending the EO period without requiring additional fees or applications, the government aims to provide relief to exporters and ensure smoother trade operations during this challenging period.

This relaxation is in addition to the EO extension facility already available under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP), 2023, which typically requires payment of composition fees. The automatic extension reflects the government’s commitment to supporting exporters and promoting international trade.

Implications for Exporters 

Exporters holding Advance Authorisations or EPCG Authorisations with EO periods expiring between March 1, 2026, and May 31, 2026, can now benefit from the following:

Ease of Compliance:
- The automatic extension eliminates the need for additional paperwork, applications, or fees, making it easier for exporters to comply with EO requirements.
Extended Timeframe:
- Exporters have an additional three months to fulfill their export obligations, providing them with much-needed flexibility to navigate supply chain disruptions and logistical challenges.
Enhanced Support:
- This measure complements existing EO extension facilities under the FTP/HBP, offering exporters multiple avenues to meet their obligations.

Conclusion

The automatic extension of the Export Obligation period for Advance and EPCG Authorisations is a welcome step by the DGFT to address the challenges posed by global trade disruptions. By simplifying the process and providing additional time for compliance, the government is ensuring that exporters can continue their operations without undue stress. This initiative underscores the government’s commitment to fostering a conducive environment for international trade and supporting the growth of Indian exports.

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Source: DGFT

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