India Regulatory News

India's 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 to Export Obligation Period

·         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.

This change effectively removes the previously reduced 180-day limit for QCO-exempt imports, placing them on the standard 18-month timeline.

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

The amendment took immediate effect from the date of publication (28 August 2025).