India Extends Export Obligation Period for Imports under QCO Exemption
Overview
The Directorate General of Foreign Trade (DGFT) has issued a significant policy amendment via Notification No. 28/2025-26, revising the export obligation (EO) period under the Advance Authorization Scheme for imports exempted from mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals & Petrochemicals (DCPC).
Key Amendment
· Previous Provision (FTP 2023 – Para 2.03(A) (1) (g)): EO period was limited to 180 days from the date of import clearance for chemical products exempted from QCOs.
· Revised Provision: The EO period for such imports is now fully aligned with Para 4.40 of the Handbook of Procedures, i.e., 18 months from the date of clearance.
Implications for the Trade Community
· Increased Flexibility: Exporters, EOUs, and SEZ units now have a standardized 18-month EO period, improving planning and execution of export orders.
· Policy Simplification: Removes the special reduced EO timeline for chemical product imports under QCO exemptions.
· Trade Facilitation: Supports operational ease and compliance consistency across sectors importing regulated inputs under Advance Authorisation.
Effective Date
· This amendment is applicable with immediate effect from the date of issuance.
We acknowledge that the above information has been compiled from the Ministry of Commerce and Industry & Gazette of India.
