CBIC Notifies Re-Export Extension Mechanism for Two-Year Period under Customs Act

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 13.07.2026

CBIC Notifies Re-Export Extension Mechanism for Two-Year Period under Customs Act

The Ministry of Finance, through the Central Board of Excise and Customs, has issued Notification No. 28/2026-Customs, introducing significant amendments to the customs procedures and timelines under the Customs Act, 1962. This article provides a comprehensive overview of the changes, their implications, and what stakeholders need to know.

Background

The Customs Act, 1962 governs the import and export of goods in India, setting out procedures, duties, and compliance requirements. Over time, the government issues notifications to amend or clarify provisions to address evolving trade needs and public interest.

Notification No. 8/2016-Customs, dated 5th February 2016, established certain conditions and timelines for customs procedures. This notification has been amended several times, most recently by Notification No. 4/2019-Customs. The latest amendment, Notification No. 28/2026-Customs, further refines these provisions.

Key Amendment: Extension of Re-Export period for Two-Year Period

What Has Changed?

Insertion of a New Proviso in Condition (6):
- The amendment introduces an additional proviso after the first proviso in condition (6) of Notification No. 8/2016-Customs.
- The new proviso states:

“Provided further that in any particular case, the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period as it may deem fit:”

What Does This Mean?

Flexibility for Stakeholders:
- Previously, the period specified (two years) was rigid, with limited scope for extension.
- Now, if an importer or stakeholder can demonstrate a sufficient cause, the Central Board of Indirect Taxes and Customs (CBIC) has the authority to extend this period as deemed appropriate.
Case-by-Case Consideration:
- Extensions are not automatic; each case will be evaluated on its merits.
- Applicants must provide valid reasons to justify the need for an extension.

Additional Editorial Change

The amendment also substitutes the words “Provided further that” with “Provided also that” in the second proviso of condition (6), ensuring clarity and consistency in the notification’s language.

Implications for Importers and Exporters

Greater Procedural Flexibility:
- Importers and exporters facing genuine delays or unforeseen circumstances now have a formal mechanism to seek extensions beyond the standard two-year period.
Need for Documentation:
- Stakeholders must be prepared to present sufficient cause and supporting documents when applying for re-extension.
Board Discretion:
- The CBIC retains full discretion to grant or deny extensions based on the merits of each case.

How to Apply for an Extension

Step 1: Identify the need for an extension and gather all relevant documentation supporting the cause.
Step 2: Submit a formal application to the CBIC, clearly stating the reasons and attaching evidence.
Step 3: Await the Board’s decision, which will be communicated after due consideration.

Conclusion

The amendment introduced by Notification No. 28/2026-Customs reflects the government’s commitment to balancing regulatory compliance with practical business realities. By allowing extensions to the two-year period under certain conditions, the CBIC provides much-needed flexibility to stakeholders while maintaining oversight and accountability.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

Source: CBIC, Ministry of Finance, Govt. of India

Disclaimer

Handy Download:

Customs NotificationDownload

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/