Exporters Get Breathing Room Amidst West Asia Crisis

The government has provided significant relief to exporters by extending their export obligations. In response to the ongoing West Asia crisis and its impact on global shipping, a notification has granted relaxations to the trading community. Specified advance authorisations and EPCG authorisations, with obligations due to expire between March 1, 2026, and May 31, 2026, will now have an automatic extension until August 31, 2026.

This extension will be granted without the requirement of paying any composition fee. It supplements existing provisions within the foreign trade policy that allow for such extensions upon payment of fees. Exporters had been advocating for these measures to help them meet their contractual commitments amidst challenging international trade conditions. The West Asia crisis has led to disruptions in shipping, increased freight rates, and rising insurance premiums, potentially affecting India's price competitiveness.