• Dated 23rd March, 2026
Tax Alert

Extension in the Export Obligation period of Specified Advances & EPCG Authorisations till 31.08.2026

DGFT has issued a Public Notice vide. PN No. 51/2025-26 dated 06.03.2026 Extension in the EO period of specified Advance & EPCG Authorisations till 31.08.2026.

Key Amendments:

  1. DGFT has introduced amendments in the Handbook of Procedures (HBP), 2023 by inserting new provisions under Para 4.40, Para 5.13 and Para 5.16.
  2. The amendments provide automatic extension of Export Obligation (EO) period for specified Advance Authorisation and EPCG Authorisations.
  3. The benefit applies where the EO period or block-wise EO period (original or extended) is expiring between 01 March 2026 and 31 May 2026.
  4. In such cases, the EO period shall automatically stand extended up to 31 August 2026.

Changes Introduced:

  1. EO period for Advance Authorisation, including Advance Authorisation for Annual Requirement and Special Advance Authorisation, will stand automatically extended till 31 August 2026 if expiring within the specified period.
  2. Similarly, block-wise EO period and overall EO period under EPCG Authorisations expiring during the same period will also be automatically extended till 31 August 2026.
  3. No application, endorsement, amendment or composition fee will be required to avail this extension.
  4. However, where exporters have already obtained EO extension earlier upon payment of composition fee, refund of such fee will not be allowed.

Effect:

  1. The measure provides additional compliance time to exporters facing disruptions in global trade and logistics.
  2. Exporters with Advance Authorisation and EPCG licences nearing EO expiry during the specified period will receive automatic relief without procedural formalities or fees.
  3. The extension is in addition to the EO extension facilities already available under FTP/HBP provisions.
  4. Compliance will be verified by the Regional Authority at the time of issuance of EODC or closure/regularisation of the authorisation.
  5. Public Notice vide. PN No. 51/2025-26 dated 06.03.2026

Author: Harsh Kr Gupta

Edited By: Sneha Nandi