DGFT Notifies FTP 2023 Amendment: Caps Export Obligation Period at 180 Days for QCO-Exempt Chemical Products [Read Notification]
The DGFT has directed its regional authorities to revise procedural manuals, issue updated guidelines to licensing branches, and convene stakeholder sensitisation workshops on the changes.
![DGFT Notifies FTP 2023 Amendment: Caps Export Obligation Period at 180 Days for QCO-Exempt Chemical Products [Read Notification]](https://images.taxscan.in/h-upload/2025/06/25/2054202-dgft-ftp-2023-taxscan.webp "DGFT Notifies FTP 2023 Amendment: Caps Export Obligation Period at 180 Days for QCO-Exempt Chemical Products [Read Notification]")
The DirectorateGeneral of Foreign Trade (DGFT) has issued Notification No. 20/2025-26, dated June 23, 2025, amending Para 2.03(A)(i)(g) of the Foreign Trade Policy (FTP) 2023 with immediate effect. Under the revised provision, the export obligation (EO) period for inputs enjoying Quality Control Order (QCO) exemptions on chemical products notified by the Department of Chemicals...
The DirectorateGeneral of Foreign Trade (DGFT) has issued Notification No. 20/2025-26, dated June 23, 2025, amending Para 2.03(A)(i)(g) of the Foreign Trade Policy (FTP) 2023 with immediate effect.
Under the revised provision, the export obligation (EO) period for inputs enjoying Quality Control Order (QCO) exemptions on chemical products notified by the Department of Chemicals & Petrochemicals (DCPC) is now strictly capped at 180 days from the date of import clearance.
Prior to the Amendment:
Previously, Para 2.03(A)(i)(g) linked the EO period for Advance Authorisation holders to Para 4.40 of the Handbook of Procedures, while stipulating that QCO-exempt imports of both textile and chemical products enjoyed a 180-day limit.
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The amendment removes textile products from this expedited regime, so that only chemical inputs notified by the DCPC benefit from the 180-day EO window. Thus, exporters relying on chemical-product QCO exemptions must ensure their shipments leave Indian shores within six months of customs clearance, or face potential penalties or cancellation of authorisations.
The amendment reiterates that inputs subject to mandatory QCOs under other ministries such as textiles governed by the Ministry of Textiles shall stand reverted to the broader timelines and procedural requirements set out in Para 4.40 of the Handbook of Procedures.
For Export OrientedUnits (EOUs) and Special Economic Zone (SEZ) developers and units, the change carries identical implications: all QCO-exempt chemical imports must now comply with the 180-day cap.
Entities planning production and export schedules around chemical-input imports should now review and revise their supply chains and logistics timelines to accommodate the 180-day cap. Failure to meet this timeline may warrant enforcement actions under the FTP, including imposition of fines and revocation of licence privileges.
The DGFT notification clarifies by noting that the amendment was issued with the approval of the Minister of Commerce & Industry and is effective immediately.
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