180-Day Export Obligation Limit Doesn’t Applies To Textile Imports Under QCOs: DGFT
The Directorate General of Foreign Trade (DGFT) has revised Para 2.03(A)(i)(g), which governs Advance Authorisation provisions for the import of inputs subject to mandatory Quality Control Orders (QCOs).
The revised provision clarifies that the Export Obligation (EO) period for Advance Authorisations will remain as per Para 4.40 of the Handbook of Procedures. However, the EO period will now be strictly limited to 180 days from the date of clearance of import consignments only in respect of chemical products, as notified by the Department of Chemicals and Petrochemicals (DCPC).
Previously, this 180-day EO restriction applied to both textile and chemical products, as notified by their respective ministries — Ministry of Textiles and DCPC. With this notification, the 180-day cap no longer applies to textiles.
As per the DGFT, the effect of this change is that only chemical products imported under Advance Authorisation and exempted under QCOs will be bound by the 180-day EO timeline. Textile products are no longer subject to this restricted time frame.
The update streamlines compliance for exporters in the textile sector, providing them greater flexibility in meeting export obligations while continuing to enforce stricter controls over the chemical sector due to safety and quality concerns.
The notification has been issued with the approval of the Minister of Commerce & Industry.
For more details, stakeholders are advised to refer to Para 4.40 of the Handbook of Procedures and consult the DGFT for further clarifications.
Notification Details
Notification No. 20/2025-26
Date: 23/06/2025
Click Here To Read Notification
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Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
