India's Directorate General of Foreign Trade (DGFT) has issued a significant policy
amendment via Notification No. 28/2025-26, revising the export obligation (EO)
period under the Advance Authorization Scheme for imports exempted from
mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals
& Petrochemicals (DCPC).
Key Amendment to Export Obligation Period
·
Previous
Provision (FTP 2023 - Para 2.03(A) (1) (g)): EO
period was limited to 180 days from the date of import clearance for chemical
products exempted from QCOs.
·
Revised
Provision: The EO period for such imports is now
fully aligned with Para 4.40 of the Handbook of Procedures, i.e., 18 months
from the date of clearance.
This change effectively removes the previously reduced 180-day limit for QCO-exempt imports, placing them on the standard 18-month timeline.
Implications for
Trade Community
·
Increased
Flexibility:
Exporters, EOUs, and SEZ units now have a standardized 18-month EO period,
improving planning and execution of export orders.
·
Policy
Simplification:
Removes the special reduced EO timeline for chemical product imports under QCO
exemptions.
·
Trade
Facilitation:
Supports operational ease and compliance consistency across sectors importing
regulated inputs under Advance Authorisation.
Effective Date
The amendment took immediate effect from the date of publication (28 August 2025).
