How Modi government has simplified exports amid West Asia crisis
What's the story
In light of the ongoing geopolitical tensions affecting global shipping routes and supply chains, India has announced an extension of the Export Obligation (EO) period. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, issued a public notice announcing this facilitation measure for exporters. The EO period has been extended till August 31, 2026, for certain export promotion schemes.
Extension
Automatic extension of EO period
The DGFT's notice provides for an automatic extension of the EO period or block-wise EO fulfillment period till August 31, 2026. This applies to specified Advance Authorizations and EPCG Authorizations expiring between March 1, 2026, and May 31, 2026. The extension is automatic and exporters need not submit any separate application or pay any composition fee to avail this benefit.
Scope of relaxation
Relaxation granted to Advance Authorisations and EPCG authorisations
The relaxation granted by the DGFT applies to Advance Authorizations, including Advance Authorisation for Annual Requirement and Special Advance Authorisation, as well as EPCG Authorisations. This measure aims to offer additional operational flexibility for exporters facing disruptions due to current geopolitical developments affecting global trade and logistics.
Regulatory measures
Regional authorities to verify compliance
The regional authorities of DGFT will verify compliance with the Export Obligation requirements when issuing the Export Obligation Discharge Certificate (EODC), closure, or regularization of authorisation. Customs authorities have also been notified through a Public Notice to allow exports as per the revised EO timelines. This is part of India's effort to ensure smooth trade operations amid global uncertainties.