Textile Exporters Get Relief As DGFT Relaxes 180-Day Export Obligation Rule
In a welcome move for textile exporters, the Directorate General of Foreign Trade (DGFT) has eased export obligation (EO) rules under the Advance Authorisation scheme, removing textile products from the purview of the stricter 180-day compliance period.
Earlier, all imports under Advance Authorisation for certain notified products including textiles had to meet export obligations within 180 days of import clearance. With the latest amendment to Para 2.03(A)(i)(g) of the Foreign Trade Policy (FTP) 2023, this rule will now apply only to chemical products covered under Quality Control Orders (QCOs) issued by the Department of Chemicals & Petrochemicals (DCPC).
Textile products notified under QCOs by the Ministry of Textiles have been excluded from this requirement. This means textile importers under Advance Authorisation can now follow the broader EO timelines defined in Para 4.40 of the Handbook of Procedures (HBP), offering more operational flexibility.
The change is expected to reduce compliance pressure, support better production planning and align policy with the sector’s real-world dynamics. By limiting the stricter EO clause to chemicals, the DGFT has simplified trade procedures and offered a significant boost to the textile export sector.
