Relief to Chemical Exporters: DGFT in Consultation with Department of Chemicals and Petrochemicals Extends Export Obligation Period from existing 6 months to 18 months for QCO Products notified by DCPC under Advance Authorization

Relief to Chemical Exporters: DGFT in Consultation with Department of Chemicals and Petrochemicals Extends Export Obligation Period from existing 6 months to 18 months for QCO Products notified by DCPC under Advance Authorization

The chemical industry has warmly received a key decision by the Directorate General of Foreign Trade (DGFT) issued at the behest of Department of Chemicals and Petrochemicals (DCPC), vide Notification No. 28, dated 28.05.2025, which extends the Export Obligation period under Advance Authorization for products falling under mandatory Quality Control Orders (QCOs) notified by the DCPC. The Export Obligation timeframe has now been extended from 6 months to 18 months, offering a substantial buffer to the industry.

This follows a similar adjustment for QCOs notified by other ministries, such as Textiles, where the period was also extended to 18 months. This measure extends essential support and flexibility to exporters dealing with chemicals and petrochemicals across India. The move is poised to simplify trade processes and elevate the global market edge of Indian goods.

Through the Advance Authorization Scheme, importers can bring in duty-free raw materials for export production without adhering to QCOs for those inputs, ensuring a steady flow of export operations. A significant number of these authorizations cater to the chemical sector, emphasizing the value of this policy shift.

The Government of India remains committed to strengthening the Chemicals and Petrochemicals landscape through targeted strategies, acknowledging its pivotal role in economic growth. In 2024-25, the sector’s export contributions reached an impressive level of USD 46.4 Billion which is 10.6% of the total export value of the country, reinforcing its critical status.

This initiative aims to ease financial pressures from input costs, guarantee raw material availability, and fortify the competitive position of Indian chemical products worldwide. The Department of Chemicals and Petrochemicals and DGFT’s actions demonstrate a forward-thinking and strategic vision.

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