On 6 March 2026, the Directorate General of Foreign Trade (DGFT) issued a public notice extending the Export Obligation (EO) period of specified Advance & EPCG Authorisations.
Key takeaways:
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Due to the ongoing geopolitical disruptions affecting global trade routes and logistics, there have been challenges for timely export fulfilments.
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Recognising this, the DGFT exercised its powers under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2023 to amend the Handbook of Procedures (HBP) 2023.
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Under this announcement, DGFT has extended export obligation period until 31 August 2026, to facilitate exporters by providing additional time to meet their export commitments without imposing extra financial or procedural burdens.
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A new sub-paragraph 4.40(i) has been inserted in the HBP, stating that all Advance Authorisations, including Advance Authorisation for Annual Requirement and Special Advance Authorisation, whose EO Period (whether original or already extended) is expiring between 1 March 2026 and 31 May 2026, will automatically be extended up to 31 August 2026.
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Through the insertion of Para 5.13(f), EPCG Authorisation holders have also been granted relief.
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Where the block-wise EO period is expiring during the period from 1 March 2026 to 31 May 2026, the said block-wise EO period will be automatically extended up to 31 August 2026.
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Additionally, Para 5.16(f) provides that in cases where the overall EO period under EPCG Authorisations is expiring between 1 March 2026 and 31 May 2026, these will also be automatically extended till 31 August 2026.
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The extension is fully automatic and system-driven, requiring no application, no composition fee, and no amendment or endorsement by Regional Authorities.
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The notification clarifies that if any Advance or EPCG Authorisation holder has already obtained an EO extension by paying a composition fee, no refund of that fee is permitted.
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While Customs will allow exports accordingly, EO compliance will be examined by the concerned RA at the time of EODC issuance, closure, or regularisation.
Impact:
This measure provides significant relief to exporters facing delays beyond their control. By extending EO timelines without additional cost or procedural requirements, DGFT has:
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Reduced the risk of penalties and authorisation defaults
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Improved ease of doing business; and
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Provided exporters with much-needed operational flexibility amid uncertain global trade conditions.
Overall, the primary objective of this move is to facilitate exporters by granting additional time for EO compliance without imposing any extra financial or procedural burden.