The Directorate General of Foreign Trade (DGFT) has issued an important amendment under the Foreign Trade Policy (FTP) 2023, impacting the Export Obligation (EO) period for imports under the Advance Authorisation (AA) Scheme.
Key Amendment
The change pertains to Para 2.03(A)(i)(g) of FTP 2023, which governs the EO period for products subjected to mandatory Quality Control Orders (QCOs) notified by the Department of Chemicals & Petrochemicals (DCPC).
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 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 the Notification
- Extended Timeline: Exporters now have 18 months (instead of 6 months) to meet EO requirements under AA for chemical products under QCOs.
- Ease of Compliance: Aligns EO timelines across all AA holders, reducing complexity.
- Support to Industry: Provides exporters and chemical manufacturers with additional flexibility in production and exports.
Conclusion
This amendment is a major relief for exporters in the chemical sector, ensuring they have sufficient time to fulfill obligations under Advance Authorisation. It promotes trade facilitation while maintaining compliance with QCO norms issued by DCPC.
Notification Reference: DGFT
Notification No. 28/2025
28 /08/2025
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