News Details
India Extends Export Obligation Period for Imports under QCO Exemption
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
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 Ministry of Commerce and Industry & Gazette of India.
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