On September 12, 2025, the Directorate General of Foreign Trade (DGFT) of India issued Notification No. 28/2025-26, announcing an adjustment to the export obligation (EO) period for imports of goods exempt from the Mandatory Quality Control Order (QCO) issued by the Department of Chemicals and Petrochemicals (DCPC) under the Advance Authorization Scheme.
The export obligation period refers to the time within which an importer must complete a certain amount of exports after importing certain goods, in order to meet policy requirements. Previous regulations stipulated that the EO period for chemical products exempt from QCO was set at 180 days from the date of customs clearance. The revised regulation extends this EO period to 18 months from the date of customs clearance.
Impact
- Increased Flexibility: Exporters, Export Oriented Units (EOU), and Special Economic Zone (SEZ) units now have a standardized 18-month EO period, giving businesses more time to plan and execute production and exports, thereby improving the planning and execution of export orders.
- Facilitating Trade: This adjustment enhances operational convenience and compliance consistency for industries importing controlled inputs under the Advance Authorization Scheme.
Effective Date
The revision takes effect immediately from the date of publication.
