The Central Government, in exercise of powers under the Foreign Trade (Development & Regulation) Act, 1992, has issued a notification (No. 71/2023 dated 11th March 2024) amending Para 2.03(A)(i)(g) of the Foreign Trade Policy (FTP) 2023. This amendment brings clarity regarding the Export Obligation (EO) period for import of inputs under Quality Control Orders (QCOs) by Advance Authorisation holders, EOUs, and SEZ units.
This change is effective immediately.
Table:
Existing Para 2.03(A) (i) (g) | Revised Para 2.03(A) (i) (g) |
The Export Obligation period for such authorizations shall be as per 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 textile and chemical Products, notified by Ministry of Textiles and Department of Chemicals & Petrochemicals (DCPC) respectively. | 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). |
Effect of This Amendment
- The 180-day restriction on EO period will now apply only to chemical products covered under QCOs by the Department of Chemicals and Petrochemicals (DCPC).
- In contrast, products notified under QCOs by the Ministry of Textiles will now follow the standard EO period as per Para 4.40 of HBP, i.e., no special restriction of 180 days.
- This revision brings relief and flexibility to textile exporters using Advance Authorisation to import QCO-covered materials.
Why This Matters
Advance Authorisation holders dealing with QCO-mandated imports now have more clarity and ease of compliance, especially in the textile sector. By limiting the EO period restriction to only chemical products, the government ensures:
- Better alignment of compliance timelines with actual export cycles
- Reduced risk of deemed default due to rigid EO timelines
- Encouragement for value-added exports in the textile sector
Reference
- Foreign Trade Policy (FTP) 2023 – Para 2.03(A)(i)(g)
- Handbook of Procedures (HBP) – Para 4.40
- Notification No. 71/2023, dated 11.03.2024
Conclusion
This amendment is a welcome step towards rationalizing compliance timelines for QCO-bound imports under Advance Authorisation. Exporters—particularly from the textile sector—should revisit their EO planning to align with the updated policy and leverage the flexibility now provided.
Notification Reference: DGFT
Notification No. 20/2025-26
23 /06/2025
Join our affiliate program today and earn generous commissions! https://shorturl.fm/Afd4r
Become our partner and turn referrals into revenue—join now! https://shorturl.fm/xsCcT
Start sharing our link and start earning today! https://shorturl.fm/kmawa