DGFT extends export obligation period to 18 months

The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) 2023, extending the Export Obligation (EO) period for Advance Authorisation holders, Export Oriented Units (EOUs) and SEZs from 6 months to 18 months. This relaxation applies to imports of raw materials subjected to mandatory Quality Control Orders (QCOs), including chemicals and petrochemicals. The move is aimed at easing the burden on exporters grappling with rising US tariffs. 

The extension is expected to provide significant relief to exporters in chemicals, petrochemicals and pharmaceuticals who are already facing challenges from higher US tariffs. The additional time will help them plan production and exports more efficiently, while also absorbing global trade shocks, as per a report.

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