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DGFT Extends Export-Obligation Period to 18 Months Under Advance Authorisation

The step responds to steep U.S. tariff pressures.

Overview

  • The DGFT amended the Foreign Trade Policy 2023 to raise the export-obligation timeline from 180 days to 18 months for imports covered by mandatory Quality Control Orders.
  • The change applies to Advance Authorisation holders, Export Oriented Units and SEZ units, aligning timelines with Para 4.40 of the Handbook of Procedures.
  • Inputs imported duty-free for export production remain exempt from QCO compliance when used exclusively in export goods under the scheme.
  • Officials say the measure offers immediate relief to chemicals, petrochemicals and pharmaceuticals exporters facing higher U.S. tariffs and cost pressures.
  • The government cited the sector’s $46.4 billion export contribution in 2024–25 and indicated additional export-support steps are being prepared.