Notification No. 28/2025-26, Dated 28-08-2025
1. Introduction
The Directorate General of Foreign Trade (DGFT) has issued a notification introducing an important amendment to Para 2.03(A)(i)(g) of the Foreign Trade Policy, 2023. This change specifically relates to the Advance Authorisation scheme, which allows duty-free import of inputs for the production of export goods. The amendment is targeted at easing compliance for importers dealing with products subjected to mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals & Petrochemicals (DCPC).
2. Extension of Export Obligation Period
Under the earlier framework, importers availing Advance Authorisation for such QCO-covered products were required to fulfil their Export Obligation (EO) within 6 months. Recognising the practical difficulties faced by exporters in adhering to this limited timeline, the DGFT has now extended the EO period to 18 months. This amendment aligns the EO timeline with industry needs and ensures smoother compliance with quality control requirements.
3. Applicability and Governing Provisions
With this revision, the EO period for all Advance Authorisation holders will now be governed by Para 4.40 of the Handbook of Procedures (HBP). The extended 18-month timeline will provide uniformity and clarity in implementation. This change also benefits Export Oriented Units (EOUs) and Special Economic Zone (SEZ) units, which frequently import inputs falling under mandatory QCOs for their manufacturing and export operations.
4. Impact on Trade and Compliance
The amendment offers significant relief to exporters by providing them with a longer window to fulfil export commitments, thereby reducing compliance pressure. The extension also ensures that trade practices remain aligned with domestic quality regulations without hampering export competitiveness. By harmonising the EO period, DGFT has not only simplified procedures but also reinforced India’s commitment to facilitating ease of doing business for the export sector.
