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India’s Directorate General of Foreign Trade (DGFT) has announced an amendment to the Foreign Trade Policy (FTP) 2023. The amendment, outlined in Notification No. 28/2025-26 dated August 28, 2025, specifically extends the Export Obligation (EO) period for imports under Advance Authorisation that are exempted for mandatory Quality Control Orders (QCOs) for chemical products.
Understanding Advance Authorisation and QCOs
The Advance Authorisation Scheme is a key export promotion program that allows for the duty-free import of inputs required for the manufacture of export products. Under this scheme, exporters can import raw materials, components, and other inputs without paying customs duties, provided they fulfill an export obligation within a specified period.
QCOs are issued by the Bureau of Indian Standards (BIS) to ensure the quality and safety of various products. These orders make it mandatory for certain products, both domestically produced and imported, to be certified by BIS. QCO exemptions are granted for imports meant solely for export purposes.
Effects of the Notification
The most impactful change brought by this notification is the extension of the Export Obligation Period for QCOs exemptions from 180 days to 18 months, from the date of clearance of import consignments. This extension applies to QCOs for chemical products as notified by the Department of Chemicals & Petrochemicals. This extension aligns the EO periods for QCOs-exempt imports with the general provisions of Para 4.40 of the Handbook of Procedures, which typically allows for an 18-month initial EO period under Advance Authorisation.
