The Directorate General of Foreign Trade (DGFT) has issued Notification No. 28/2025-26 dated August 28, 2025, amending Para 2.03(A)(i)(g) of the Foreign Trade Policy (FTP) 2023 to ease compliance for Advance Authorisation holders, EOUs and SEZs importing inputs subject to mandatory Quality Control Orders (QCOs). Earlier, the Export Obligation (EO) period for such imports, particularly chemical products notified by the Department of Chemicals & Petrochemicals (DCPC), was restricted to 180 days from the date of clearance. With this amendment, the 180-day limit has been removed, and the EO period will now be governed by Para 4.40 of the Handbook of Procedures, generally allowing up to 18 months. This change, approved by the Minister of Commerce & Industry, provides exporters greater flexibility and aligns QCO-bound imports with the broader FTP framework.
In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.03 of the Foreign Trade Policy (FTP), 2023, the Central Government hereby makes the following amendments relating to Advance Authorisation in Para 2.03(A) (i) (g) of FTP, 2023, notified vide Notification No. 71/2023 dated 11.03.2024 as amended from time to time, with immediate effect:
| Existing Para 2.03(A) (i) (g) | Revised Para 2.03(A) (i) (g) |
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The Export Obligation period for such authorizations shall be as per Para 4.40 of Handbook of Procedures. However, EO period is restricted to 180 days from the date of clearance of import consignments in respect of QCO exemption for chemical products, notified by the Department of Chemicals & Petrochemicals (DCPC). |
The Export Obligation period for such authorizations shall be as per Para 4.40 of Handbook of Procedures. |
Effect of this Notification:
The Export Obligation Period against the import of the products that are subjected to mandatory QCOs by the Department of Chemicals & Petrochemicals (DCPC), under Advance Authorisation has been extended from existing 06 months to 18 months. Henceforth, EO period for all AA holders shall be as per Para 4.40 of Handbook of Procedures.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/08/Notification-28-eng.pdf
