India Extends Export Obligation Period Amid Global Supply Chain Challenges
In light of the recent geopolitical shifts affecting shipping and international supply chains, the Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce & Industry, has unveiled new measures to support exporters. As part of these efforts, the DGFT announced an extension of the Export Obligation (EO) period for certain export promotion schemes, designed to alleviate the pressures on exporters navigating these turbulent times.
Through its Public Notice No. 51/2025-206, issued on March 6, 2026, the DGFT has automatically extended the EO period and Block-wise EO fulfillment period to August 31, 2026, specifically for selected Advance Authorisations and Export Promotion Capital Goods (EPCG) Authorisations. This extension applies to authorisations that have EO periods expiring between March 1, 2026, and May 31, 2026, providing significant relief to exporters.
This extension is set to take effect without any need for additional applications or composition fees from exporters. The measure aims to offer greater operational flexibility for those facing disruptions posed by ongoing global challenges impacting the trade and logistics sectors.
Scope of the Export Obligation Extension
The relaxation in the EO period encompasses various types of Advance Authorisations, including those for Annual Requirement and Special Advance Authorisation, alongside EPCG Authorisations. Importantly, this automatic extension complements existing provisions in the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP), which allow exporters to apply for EO extensions through payment of specified composition fees when needed.
Compliance Verification and Customs Coordination
DGFT’s Regional Authorities will oversee compliance with the Export Obligation requirements at critical points, including the issuance of the Export Obligation Discharge Certificate (EODC) and during the closure or regularisation of the authorisations. Furthermore, customs authorities have been notified about these revised EO timelines, ensuring a streamlined process for exporters.
This initiative highlights the government’s ongoing commitment to bolster support for India’s exporters and mitigate adverse effects arising from temporary global disruptions. By facilitating a smoother export process, officials aim to ensure that compliance with export obligations remains feasible, thereby sustaining India’s export performance amidst challenging circumstances.
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