Under Export Promotion Capital Goods (EPCG) scheme, domestic firms are allowed to import duty-free machines but they have to meet certain export obligations against that

The government has granted certain relaxations to exporters in fulfilling their export obligations, as the trading community is facing difficulties in the movement of goods due to the ongoing West Asia crisis, according to a notification.

“In view of the prevailing geo-political developments affecting international shipping routes and global supply chains, and with a view to facilitating exporters, the export obligation (EO) period/block wise EO period in respect of specified advance authorisations and EPCG authorisations expiring between March 1, 2026 and May 31, 2026 has been automatically extended up to August 31, 2026 without payment of composition fee,” the Directorate General of Foreign Trade (DGFT) has said in a public notice.

Under Export Promotion Capital Goods (EPCG) scheme, domestic firms are allowed to import duty-free machines but they have to meet certain export obligations against that.

This relaxation is in addition to the existing facility already available under foreign trade policy upon payment of composition fees, it said.

Exporters were demanding these extensions to meet their obligations.

The exporting community was earlier grappling with high US tariffs and is facing challenges from the West Asian crisis triggered by the joint attack of the US and Israel on Iran last month. The conflict has led to disruptions in the movement of ships.

The conflict has also pushed up sea and air freight rates, while insurance premiums are also rising. If the situation persists, it could affect the price competitiveness of Indian goods in global markets.

The country’s exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the trade deficit widened to a three-month high of USD 34.68 billion.