DGFT Extends Export Obligation Deadlines for EPCG and Advance Authorization Schemes

India’s Directorate General of Foreign Trade (DGFT) has granted exporters an automatic extension of export obligation deadlines under the EPCG and Advance Authorization schemes until August 31, 2026. The measure provides operational flexibility for exporters navigating geopolitical disruptions affecting global logistics and trade flows.

Amid the 2026 geopolitical tensions that are disrupting global shipping lanes, logistics networks, and supply chains, the central government has announced relief measures for exporters. The initiative aims to provide additional time for businesses operating under key export promotion schemes to meet their compliance requirements.

Automatic extension announced for export obligation period

Find Business Support

Planning export-oriented manufacturing in India? Our advisors can help structure efficient operations.

Through public notice No. 51/2025–26 issued on March 6, 2026, India’s Directorate General of Foreign Trade (DGFT) has granted an automatic extension of the Export Obligation (EO) period for certain authorizations.

The extension applies to authorizations whose EO or block-wise EO fulfillment period was originally scheduled to expire between March 1, 2026, and May 31, 2026. Under the new directive, the deadline for fulfilling export obligations has been extended until August 31, 2026.

This relaxation covers both Advance Authorizations and Export Promotion Capital Goods (EPCG) Authorizations, two major schemes designed to promote export-oriented manufacturing and trade.

Schemes covered under the relaxation

The extension applies to several variants of the Advance Authorization scheme, including the Advance Authorization for annual requirements and Special Advance Authorization. 

It also includes authorizations issued under the EPCG scheme, which allows the import of capital goods at concessional duty rates in exchange for meeting specified export obligations.

No application or fees required

The relief measure has been structured to minimize administrative burden. Eligible exporters will receive the extension automatically, without the need to submit any separate request or pay the composition fee that is normally required for EO deadline extensions.

The extension is intended to provide exporters with additional operational flexibility as they navigate disruptions affecting global trade flows and logistics routes.

Compliance verification by DGFT authorities

While the EO timeline has been extended, compliance with export obligations will still be subject to review by DGFT’s regional offices. Verification will occur when exporters apply for:

• Issuance of the Export Obligation Discharge Certificate (EODC)
• Closure of the authorization; or
• Regularization of pending obligations

Customs authorities notified

The DGFT has also notified customs authorities to ensure exports are permitted in line with the revised EO timelines. This coordination is intended to avoid procedural bottlenecks and ensure smooth implementation of the extended deadlines.

Supporting exporters amid global trade disruptions

The extension underscores India’s intent to support exporters during a period of uncertainty in international trade. By providing additional time for compliance, the measure seeks to prevent temporary geopolitical disruptions from negatively affecting exporters’ ability to meet obligations under India’s export promotion framework.

Overview of the EPCG scheme

Find Business Support

Planning export operations in India? Our advisors can help structure compliant trade frameworks.

The EPCG scheme is a key export incentive program under India’s foreign trade framework designed to strengthen domestic manufacturing competitiveness. Administered by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, the scheme enables exporters to import capital goods required for production at zero customs duty, subject to meeting prescribed export obligations.

The objective of the EPCG scheme is to support the modernization and technological upgrading of India’s manufacturing and service sectors by lowering the cost of importing production equipment.

Duty-free import of capital goods

Under the scheme, eligible businesses can import capital goods used for pre-production, production, and post-production activities without paying customs duty. Exporters also have the option to procure these capital goods from the domestic market in accordance with the provisions outlined in the Foreign Trade Policy of India.

For the purposes of the EPCG scheme, capital goods include:

1. Machinery and equipment classified as capital goods under Chapter 9 of the Foreign Trade Policy
2. Computer systems and software forming part of the capital goods setup
3. Spares, moulds, dies, jigs, fixtures, tools, and refractories
4. Catalysts required for the initial charge and one subsequent charge

These imports are permitted on the condition that the beneficiary exporter fulfills a specified export obligation within the prescribed timeline.

Eligible beneficiaries

Find Business Support

Stay ahead of India’s evolving trade regulations with expert market intelligence and advisory support.

The EPCG scheme is available to a wide range of export-oriented businesses, including:

1. Manufacturer exporters, with or without supporting manufacturers
2. Merchant exporters linked with supporting manufacturers
3. Service providers engaged in export of services

This broad eligibility framework allows both manufacturing and service sectors to benefit from reduced capital investment costs.

Key requirements for applying

To apply for authorization under the EPCG scheme, businesses must possess a valid Import Export Code (IEC) issued under India’s foreign trade regulations. Applicants must also comply with additional eligibility conditions and procedural requirements outlined in Chapter 5 of the Foreign Trade Policy and the associated Handbook of Procedures.

Overall, the EPCG scheme plays a central role in encouraging export-oriented investment in advanced machinery and technology, helping Indian businesses improve productivity, product quality, and global competitiveness.

• Previous Article Navigating the 2026 Hormuz Blockade: Strategic Implications of the US 30-Day Russian Oil Waiver for India
• Next Article India Eases Port Procedures as Strait of Hormuz Disruptions Force Cargo to Turn Back