Advance Authorisation — Extension of Export Obligation Period
An Advance Authorisation is issued with a specified Export Obligation Period (EOP), within which the export obligation must be fulfilled. For a normal Advance Authorisation, the EO Period is generally 18 months from the date of issue of the Authorisation, subject to specific provisions applicable to certain categories of exports.
Where the export obligation cannot be completed within the prescribed period, the Authorisation holder may request an extension of the Export Obligation Period (EOP) from the concerned DGFT Regional Authority (RA), subject to the applicable conditions and payment of the prescribed composition fee.
Governing provisionHBP, 2023 Para 4.40 deals specifically with the Export Obligation Period and its extension.
EOP Extension at a Glance
- Facility
- Extension of Export Obligation Period under Advance Authorisation.
- Authority
- The concerned DGFT Regional Authority.
- Governing provision
- HBP, 2023 Para 4.40
- Normal EO Period
- 18 months from the date of issue of the Advance Authorisation, unless a different period is prescribed for the category of export.
- First extension
- The RA may consider one extension of the EOP up to 6 months under Para 4.40(e), subject to payment of the prescribed composition fee.
- Second extension
- A further extension of up to 6 months may be considered by the RA under Para 4.40(f), subject to the prescribed composition fee.
- Maximum extension
- Only two extensions of six months each are permitted. The RA cannot allow an extension beyond 12 months from the date of expiry of the original EO Period.
- Composition fee
- Based on the CIF value of the imports under the Advance Authorisation and the number of the EOP extension being sought.
- Appendix 4J Authorisations
- Extensions are allowed for a period not more than half of the stipulated EOP, as per Para 4.40(d).
- Export product banned or restricted
- As per Public Notice No 52/2015-2020 dated 18-01-2023, the EOP of an Advance Authorisation issued before the ban stands automatically extended for a period equal to the duration of the ban, without any composition fee.
When Can an EO Period Extension Be Sought?
An Advance Authorisation holder whose export obligation remains unfulfilled may request extension of the EO Period from the concerned Regional Authority, subject to the provisions of Para 4.40.
The first extension may be considered for up to six months from the date of expiry of the original EO Period, on payment of the applicable composition fee. If the export obligation remains unfulfilled even after the first extension, a further extension of up to six months may be considered under Para 4.40(f), subject to the applicable composition fee.
At the time of applying for an extension, the Authorisation holder is required to submit a self-declaration stating that unutilised imported / domestically procured inputs are available with the applicant.
The two extensions put together cannot extend the EO Period beyond 12 months from the expiry of the original EO Period. No further extension can be granted by the Regional Authority under Para 4.40(f) of HBP, 2023.
When Different Extension Rules Apply
Authorisations under Appendix-4J
Para 4.40(d) of HBP, 2023 contains a separate provision for Authorisations issued under Appendix-4J. Its extension provisions and composition fee are different from the normal first and second EOP extensions under Para 4.40(e) and (f).
The allowed period of extension of an Appendix-4J Authorisation is not more than half of the stipulated Export Obligation Period, as per Para 4.40(d) of HBP, 2023.
Export product banned or restricted
Whenever a ban or restriction is imposed on the export product, the export obligation period of an Advance Authorisation already issued before the ban stands automatically extended for a period equal to the duration of the ban, without any composition fee.
Public Notice No 52/2015-2020 dated 18-01-2023What the Extension Costs
The composition fee for the first and second extensions is determined by the CIF value of the Advance Authorisation and the number of the extension being sought. It is a fixed amount — not calculated on the export shortfall.
| CIF value of the Advance Authorisation | First extensionPara 4.40(e) | Second extensionPara 4.40(f) |
|---|---|---|
| CIF value up to ₹2 crore | ₹5,000 | ₹10,000 |
| CIF value above ₹2 crore and up to ₹10 crore | ₹10,000 | ₹20,000 |
| CIF value above ₹10 crore | ₹15,000 | ₹30,000 |
Enter the CIF value to see the applicable composition fee.
Documents Required for EOP Extension
- The application for EOP extension is filed online with the concerned Regional Authority in the prescribed manner.
- Keep the relevant Advance Authorisation and the export-obligation records available for the application, and for any clarification the Regional Authority may seek.
- Provide a self-declaration confirming that unutilised imported / domestically procured inputs are available with the applicant.
- Furnish any additional documents or information the Regional Authority requires in response to the application or a query.
Process for Extension of Export Obligation Period
-
Review the EO position
Review the exports already made against the Advance Authorisation and determine whether the export obligation can be completed within the existing EO Period.
-
Determine the applicable extension
If additional time is required and the raw materials are still available, determine whether the application is for:
- the first extension under Para 4.40(e); or
- the second extension under Para 4.40(f), where the first extension has already been availed.
-
Determine the composition fee
Identify the CIF value of the Advance Authorisation and determine the applicable composition fee for the relevant extension.
-
File the application
Submit the EOP-extension application online to the concerned DGFT Regional Authority in the prescribed manner, along with the applicable fee and required information / documents.
-
Submit additional information, if required
If the Regional Authority raises a query, furnish the required clarification or supporting documents.
-
Obtain the extension
Once the request is considered and approved, the extended EO Period should be reflected against the Advance Authorisation. The remaining export obligation must then be fulfilled within the extended period.
How It Works for an Authorisation Worth ₹3.5 Crore
A company holds an Advance Authorisation with a CIF value of ₹3.5 crore and an EO Period of 18 months. The company is unable to complete the entire export obligation within the original EO Period.
The company may seek the first extension of up to six months under Para 4.40(e) of HBP, 2023. Since the CIF value is more than ₹2 crore but does not exceed ₹10 crore, the applicable composition fee is ₹10,000. The company applies and obtains the EOP extension for a further 6 months from the date of expiry of the stipulated EOP.
If the export obligation is still not completed even after the first extension, the company may seek a further extension of up to another six months under Para 4.40(f), subject to the applicable conditions and payment of the second-extension composition fee of ₹20,000.
The two extensions together cannot extend the EO Period beyond 12 months from the expiry of the original EO Period. Hence the company must fulfil the EO within the second extension period.
Where the Rules Come From
- HBP, 2023, Para 4.40(e) — for the 1st EOP extension.
- HBP, 2023, Para 4.40(f) — for the 2nd EOP extension, up to 6 months after the 1st extension.
