Centre has extended the timeframe of the Export Obligation period to 18 months from existing six months, in a relief for exporters dealing with chemicals and petrochemicals, a government release said on September 2.
The decision by the Directorate General of Foreign Trade (DGFT) on the behalf of Department of Chemicals and Petrochemicals (DCPC) has been taken for Advance Authorization for products that fall under mandatory Quality Control Orders (QCOs).
The Advance Authorization Scheme allows importers to bring in duty-free raw materials for export production without adhering to QCOs, which ensures seamless export operations. A significant number of these authorizations pertain to the chemical sector, impacting players like SRF and PI Industries, among others.
The relief aims to ease financial pressures from input costs, guarantees raw material availability, and strengthens Indian chemical products' competitive position.
"The Government of India remains committed to strengthening the Chemicals and Petrochemicals landscape through targeted strategies, acknowledging its pivotal role in economic growth," a release by the Ministry of Chemicals and Fertilizers said. In FY25, the chemical sector's export contributions had touched $46.4 billion, or 10.6% of the total export value.
This measure is in line with a similar adjustment for QCOs for textiles and other sectors, where the period was extended to 18 months.
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