The DGFT vide Public Notice No. 34/2025-2026 dated December 01, 2025, notified an amendment in Para 6.34 of Chapter 6 of the Handbook of Procedures (HBP) 2023 with the objective of improving clarity and simplifying administrative procedures related to the Extension of Letter of Permission (LOP) / Letter of Intent (LOI) for EOU/BTP/EHTP/STP units.
The amendment has been issued under the powers conferred by Paragraphs 1.03 and 2.04 of the Foreign Trade Policy 2023, and provides enhanced flexibility in the extension process of LOP/LOI.
Key Features of the Amendment
The revised provision replaces the earlier text that allowed extension of LOP beyond the initial validity period for up to five years at a time. The proposed amendment reads as follows:
- Extension of LOP/LOI validity will be in accordance with Para 6.01(c) of the HBP.
- Validity period for LOP/LOI once issued will be five years at a time.
- In cases where initial approval validity is restricted due to specific project requirements (e.g., setting up of an oil refinery), the initial validity of two years may be extended by one additional year, subject to submission and acceptance of valid reasons in writing.
Impact
The amendment aims to:
- Provide greater regulatory clarity to stakeholders, and
- Streamline and expedite administrative processes for validity extension of LOP/LOI for units operating under the EOU/BTP/EHTP/STP schemes.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/PN-34-English.pdf
