DGFT Extends Export Obligation Period Till 31-08-2026
DGFT has issued a new Public Notice vide No.51/2025-26 dated 06-03-2026 regarding the automatic extension of Export Obligation Period (EOP) for Advance Authorisation (AA) and EPCG licences without payment of composition fee or submission of extension application due to the prevailing geopolitical situation affecting global shipping routes and logistics.
The Government of India has introduced an important relief measure for exporters through a recent notification issued by the Directorate General of Foreign Trade (DGFT).
What is Export Obligation?
Export Obligation refers to the commitment made by exporters to achieve a specified value of exports within a given period after availing benefits under certain EPCG & Advance Authorisation schemes.
Two major schemes covered under this extension include:
Advance Authorisation Scheme
This scheme allows businesses to import raw materials duty-free if those materials are used to manufacture goods that will be exported.
EPCG (Export Promotion Capital Goods) Scheme
Under this scheme, companies can import capital goods at reduced or zero customs duty, provided they fulfil a specified export commitment within a defined time period.
These schemes are widely used by exporters in multiple sectors.
Why DGFT Extended Export Obligation Period Till 31-08-2026
- To provide relief to exporters facing delays in fulfilling export obligations due to disruptions caused by the ongoing Iran–Israel conflict.
- To support businesses operating under the Export Promotion Capital Goods (EPCG) Scheme.
- To address global trade disruptions and supply chain challenges.
- To avoid penalties for exporters who could not meet their targets.
- To encourage export growth and stability in international trade.
- To help industries manage production and logistics delays.
Key Highlights of the Notification
The notification issued by the Directorate General of Foreign Trade includes the following points:
- In cases where the Export Obligation Period (original or already extended) is expiring between 01-03-2026 and 31-05-2026, the EOP stands automatically extended up to 31-08-2026 for EPCG and Advance Authorisation (AA) holders
This step reflects the government’s continued efforts to support exporters and ensure smooth compliance with trade regulations.
Benefits for Exporters
- Block, Original EOP, Extended EOP – Automatic Extension for EPCG
- Original EOP, Extended EOP – Automatic Extension for Advance Authorisation (AA)
- No Application Required
- No Composition Fee
Conclusion
Effect of this Public Notice: The Block wise Export Obligation (EO) period, Original EO Period and Extended EO Period for the EPCG Licences, Original EO Period and Extended EO Period for Advance Authorisation (AA) Licences falls under between 01-03-2026 and 31-05-2026 have been automatically extended up to 31-08-2026 without payment of composition fee in order to facilitate exporters and take into account the current geopolitical developments affecting international shipping routes and global supply chains.