Government gave relief to exporters to fulfill their obligations, extended the period till 31st August

New Delhi. Amid the West Asia crisis, the Central Government has given some special concessions to exporters to meet their export obligations. The government has extended the export obligation period for Advanced Authorization and EPCG Authorization till 31 August 2026.

The Directorate General of Foreign Trade (DGFT) said in a notification on Saturday that exporters whose export obligation period is expiring between March 1 and May 31, 2026, have been automatically extended till August 31, 2026 without any additional duty or penalty.

According to the notification, this step has been taken in view of the problems being faced in the movement of goods due to the ongoing crisis in West Asia.

“In view of the current geopolitical developments impacting international shipping routes and global supply chains and for the convenience of exporters, the export obligation period of certain ‘Advance Authorizations’ and EPCG authorizations has been extended,” DGFT said in a public notice issued today.

The Ministry of Commerce and Industry said that DGFT has clarified in the notification that this relief is in addition to the existing facilities available with duty payment under the Foreign Trade Policy. Exporters had been demanding extension of the deadline for fulfilling these obligations for a long time.

The ministry said the export community was already facing high US tariffs. The West Asia crisis, which started with the US-Israel joint attack on Iran last month, has further increased their challenges. Due to this conflict, the movement of ships has been disrupted.

The current tensions have also pushed up sea and air freight rates, while insurance premiums have also soared. If this situation persists, the price competitiveness of Indian goods in the global markets may be affected.

It is noteworthy that under the Export Promotion Capital Goods (EPCG) scheme, domestic companies are allowed to import duty free machines, but in return they have to meet the export target in a certain time frame. The country’s exports rose 0.61 percent to $36.56 billion in January, while trade deficit reached a three-month high of $34.68 billion.