The Directorate General of Foreign Trade (DGFT) has announced an automatic extension of the Export Obligation (EO) period for certain Advance Authorisations and EPCG Authorisations.

This extension applies to authorisations whose Export Obligation period is expiring between 1 March 2026 and 31 May 2026. The EO deadline has now been extended until 31 August 2026.

Importantly, exporters are not required to submit any application or pay composition fees to avail this extension.

Background

Under the Foreign Trade Policy 2023, schemes such as Advance Authorisation and Export Promotion Capital Goods (EPCG) allow exporters to import inputs or capital goods at concessional or zero customs duty.

In return, exporters must fulfill specified Export Obligation (EO) commitments within a prescribed time period.

However, recent geopolitical developments affecting international shipping routes and global supply chains have created operational challenges for exporters. Recognizing these disruptions, DGFT has introduced a temporary compliance relief through EO period extension.

Policy Amendments Introduced

The notification introduces new provisions under the Handbook of Procedures 2023.

The following clauses have been inserted:

Advance Authorisation

• Para 4.40(l) – Export Obligation Period (EOP) for Advance Authorisations expiring between 01.03.2026 and 31.05.2026 is automatically extended until 31.08.2026.

This applies to:

• Advance Authorisation
• Advance Authorisation for Annual Requirement
• Special Advance Authorisation

EPCG Authorisations

• Para 5.13(f) – Extension of Block-wise Export Obligation period for EPCG authorisations expiring between 01.03.2026 and 31.05.2026.
• Para 5.16(f) – Extension of overall Export Obligation period for EPCG authorisations expiring during the same period.

In both cases, the EO period now stands extended until 31 August 2026.

Key Highlights for Exporters

Exporters should take note of the following important points:

• Export Obligation deadlines expiring between 1 March 2026 and 31 May 2026 are extended.
  • New EO completion deadline is 31 August 2026.
  • The extension is automatic.
  • No application is required to DGFT.
  • No composition fee is payable for this extension.
  • The extension is in addition to other EO extensions permitted under the policy.

Important Compliance Considerations

While the extension provides additional time, exporters should consider the following:

• Exporters who have already paid composition fee for earlier EO extension will not receive a refund.
• Compliance with the Export Obligation will be verified by the concerned DGFT Regional Authority during:

• Issuance of Export Obligation Discharge Certificate (EODC)
• Closure of the authorisation
• Regularisation of authorisation

• Customs authorities will allow exports based on this revised EO timeline.

Practical Implications

The extension provides relief to exporters facing logistical disruptions due to global trade uncertainties.

Exporters who were approaching EO deadlines now have additional time to complete shipments and meet export commitments without incurring extension fees.

This measure helps ensure continuity of export promotion schemes while supporting businesses managing complex global supply chains.

Advisory Note – Preface Consulting.

Exporters operating under Advance Authorisation or EPCG schemes should review their authorisations to identify whether their EO period falls within the eligible timeframe.

Businesses should also ensure:

• Proper tracking of Export Obligation timelines
  • Accurate export documentation
  • Monitoring of block-wise obligations under EPCG licences

Timely compliance will help ensure smooth issuance of Export Obligation Discharge Certificates.

Notification Reference:  DGFT
Public notice 51/2025-26
o6/03/2026