The Directorate General of Foreign Trade (DGFT) in India has taken a significant step to simplify the process for exporters by automating the approval of extensions for export obligations under the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes. This change aims to cut down on repetitive procedures and delays in compliance for businesses.
A recent Trade Notice, identified as No. 21/2026-27 and released on August 21, 2026, states that once exporters receive approval from the Policy Relaxation Committee or the EPCG Committee for their extension requests, they will no longer need to submit additional applications to the regional authorities.
This automation allows for an easier update of the revised expiration dates, which will be communicated directly to the Indian Customs Electronic Gateway. This feature will assist companies in managing their export obligations more effectively.
These export obligations are a result of the benefits provided by the two schemes, which allow for duty-free imports in exchange for commitments to export goods. Specifically, the Advance Authorisation scheme permits eligible inputs needed for producing export products to be imported without customs duties, while the EPCG scheme aids in importing capital goods with certain export performance requirements.
The new automated system is particularly beneficial for businesses in manufacturing sectors, such as textiles and apparel. These industries often rely on imported materials like fibers, chemicals, and machinery, all of which are essential for meeting export demands.
When an extension is granted and the necessary fees are paid, the DGFT system will update the new expiration date and send this information to the Indian Customs Electronic Gateway. This update is expected to enhance collaboration between the DGFT and customs, thereby reducing delays in record updates.
It’s important to note that this change does not introduce new duty exemptions or broaden the range of goods that can be imported. Instead, it streamlines the process for exporters, allowing them more time to fulfill their obligations related to the duty-free input or capital goods imports without undergoing a repeat application to the regional authorities.
With the faster processing of extensions, Indian companies are positioned to have more time and confidence in handling their international orders, making better use of imported materials and machinery to meet their export commitments. However, it’s essential to understand that gaining an extension requires prior approval from the appropriate committee and does not automatically provide extra time or lessen the export responsibilities.
