New Delhi :In response to ongoing geopolitical tensions disrupting global shipping routes, logistics, and supply chains—particularly in the Middle East—the Directorate General of Foreign Trade (DGFT) has announced an automatic extension of the Export Obligation (EO) period for certain export promotion schemes.
Issued via Public Notice No. 51/2025-26 on March 6, 2026, the measure provides relief to exporters by extending the EO period—or block-wise EO fulfillment—up to August 31, 2026, for Advance Authorisations (including Annual Requirement and Special Advance Authorisation) and Export Promotion Capital Goods (EPCG) Authorisations where obligations expire between March 1 and May 31, 2026.
The extension is granted automatically—exporters need not file any separate application or pay composition fees. This builds on existing provisions in the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP), which allow paid extensions, but offers this targeted relief without additional cost to ease the burden from current global trade challenges.
The DGFT cited disruptions arising from geopolitical developments, including recent escalations in the Middle East that have affected key routes like the Strait of Hormuz, leading to vessel diversions, higher freight costs, delays, and supply chain uncertainties.
Regional DGFT authorities will verify EO compliance during issuance of the Export Obligation Discharge Certificate (EODC), authorisation closure, or regularisation. Customs authorities have been instructed to align clearance processes with the revised timelines.
This initiative underscores the government’s ongoing support for exporters, ensuring temporary international disruptions do not hinder India’s export performance or lead to non-compliance penalties under key schemes.