DGFT Extends Export Obligation Period To 18 Months For QCO-Covered Chemical Products

(MENAFN- KNN India) New Delhi, Sep 2 (KNN) The Directorate General of Foreign Trade (DGFT) has decided to extend the Export Obligation period under the Advance Authorisation Scheme for products covered by mandatory Quality Control Orders (QCOs).

According to Notification No. 28, dated May 28, 2025, the timeframe for fulfilling Export Obligations has been increased from 6 months to 18 months, providing exporters with significantly greater flexibility.

The decision, taken at the behest of the Department of Chemicals and Petrochemicals (DCPC), mirrors similar relief earlier extended to sectors such as textiles.

Industry stakeholders say the move will help ease operational pressures for exporters reliant on critical raw materials, improve the global competitiveness of Indian chemical products, and support steady export flows by aligning QCO compliance timelines with industry requirements.

The Advance Authorisation Scheme allows duty-free import of raw materials for export production without the requirement of complying with QCOs for those inputs, a facility widely used by the chemical sector.

The chemical and petrochemical industry contributed USD 46.4 billion in exports during FY25, accounting for 10.6 percent of India's total exports, underscoring its strategic role in the country's trade basket.

Government officials said the policy move reflects India's broader push to strengthen the chemicals value chain, streamline trade processes, and secure raw material supplies.

The extension is expected to enhance global competitiveness while easing financial pressures related to compliance and input costs.

(KNN Bureau)

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