In a significant policy update aimed at promoting ease of doing business for textile exporters, the Directorate General of Foreign Trade (DGFT) has issued a revised notification changing export obligation (EO) conditions under the Advance Authorization scheme. The move distinguishes textile imports from chemical imports in terms of EO timelines, marking a regulatory shift towards sector-specific facilitation.

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Key Changes Announced by DGFT

Issued as Notification No. 20/2025-26 dated 23/06/2025, the update revises Para 2.03(A)(i)(g) of the Foreign Trade Policy and Handbook of Procedures, with immediate effect. The change has important implications for exporters importing goods subject to Quality Control Orders (QCOs).

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Highlights of the Notification

1. Selective Application of the 180-Day EO Cap

Previously, the 180-day EO condition applied uniformly to both textile and chemical products imported under Advance Authorization when exempted from QCOs. The new policy limits this cap only to chemical imports, removing a key bottleneck for the textile sector.

2. Flexibility for Textile Exporters

Textile products imported under Advance Authorization are now exempt from the 180-day EO requirement, allowing exporters greater flexibility in managing shipments, production cycles, and export timelines.

3. Continued Vigilance for Chemical Imports

In contrast, the chemical sector remains tightly regulated. The 180-day cap continues due to safety, compliance, and environmental risks linked to chemical imports, especially those bypassing QCOs.

4. Reference for Compliance

DGFT has directed all stakeholders to consult Para 4.40 of the Handbook of Procedures and reach out to DGFT officials for clarification on the changes and their applicability.

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Key Data Summary

Policy Element	Previous Rule	Updated Rule (23/06/2025)
Applicable Notification	Uniform 180-day EO for all QCO-exempt imports	EO cap retained only for chemical products
Textile Imports (under QCO exemption)	EO within 180 days mandatory	180-day EO timeline removed
Chemical Imports (under QCO exemption)	EO within 180 days mandatory	Still required
Para Affected	Para 2.03(A)(i)(g) of FTP	Revised in Notification No. 20/2025-26
Date of Notification	N/A	23rd June 2025
Reference for Stakeholders	N/A	Para 4.40 of Handbook of Procedures
Approving Authority	N/A	Ministry of Commerce & Industry

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Implications for Industry

• ✅ Textile Exporters benefit from operational flexibility and easier compliance.
• ⚠️ Chemical Importers must adhere to strict EO deadlines to ensure safety and traceability.
• 📘 Traders and Customs Brokers are advised to update their procedural checklists accordingly.

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Conclusion

The DGFT’s new notification introduces a balanced regulatory approach—facilitating the textile sector’s export potential while preserving necessary safeguards in the chemical industry. Exporters should take immediate note of these changes to avoid compliance issues and to optimize their supply chain planning under the Advance Authorization scheme.