DGFT Introduces End-to-End Automated Processing for Export Obligation Extensions Under AA and EPCG Schemes

The Directorate General of Foreign Trade (DGFT) has taken a significant step toward streamlining trade facilitation by rolling out an automated system for processing Export Obligation (EO) extensions in cases decided by the Policy Relaxation Committee (PRC) / EPCG Committee. This development was formally communicated through Trade Notice No. 21/2026-27-DGFT dated August 21, 2026, addressed to all exporters, members of trade and industry, Export Promotion Councils, and Commodity Boards.

Background and Context

DGFT has consistently pursued a roadmap of digitalisation and procedural reform aimed at reducing manual touchpoints across trade-related processes. The introduction of an automated EO extension facility marks the latest in a series of such initiatives, specifically designed to ease the compliance burden on exporters holding Advance Authorisation (AA) and EPCG Authorisation.

Previously, even after the PRC/EPCG Committee approved an EO extension request, the exporter was required to separately file an extension application before the concerned Regional Authority (RA). This two-stage process not only duplicated effort but also introduced delays due to manual verification and processing at the RA level. The new automated mechanism eliminates this redundancy entirely.

Scope of the Automated Facility

The automated facility specifically covers cases where:

  • An exporter has applied for EO extension in respect of an Advance Authorisation (AA) or an EPCG Authorisation
  • The matter has been placed before and decided by the PRC/EPCG Committee
  • The Committee has resolved to grant the requested extension

In such scenarios, the entire downstream processing — from fee intimation to extension letter generation — will now be handled automatically through the DGFT system, without necessitating any fresh application by the exporter at the Regional Authority level.

Step-by-Step Process Under the New Automated System

The revised workflow, as outlined in Trade Notice No. 21/2026-27-DGFT, operates in the following sequence: