Regulation

The 31 August export-obligation deadline is now close

The automatic relief ends on 31 August. It covered a specific set of authorisations, not every open licence. This is the week to prove what shipped, reconcile the file and decide whether a paid extension or regularisation is still needed.

DGFT gave exporters affected by disrupted shipping routes an automatic extension up to 31 August 2026 for specified export obligations under Advance Authorisation and EPCG. With that date now close, the useful question is no longer whether relief was announced. It is whether your particular authorisation qualifies and whether the supporting file is ready for closure.

The extension applies where the original export-obligation period or block-wise period expired between 1 March and 31 May 2026. It covers Advance Authorisations, including Annual Requirement and Special Advance Authorisations, and EPCG Authorisations. DGFT said the extension was automatic: no separate application and no composition fee were required merely to receive this relief.

The important distinction

An automatic extension changes the deadline. It does not automatically discharge the obligation, correct shipping-bill mistakes, prove nexus, or close the authorisation. Those still have to survive verification when you seek an EODC, closure or regularisation.

First establish whether you are actually covered

  1. Identify the authorisation and original expiry. Do not work from a spreadsheet label alone. Match the authorisation number, issue date and the applicable EO or block-wise period against the licence and DGFT records.
  2. Confirm the original deadline fell inside the stated window. The special relief was for expiries from 1 March through 31 May 2026. An authorisation expiring outside that window does not become covered simply because it remains open.
  3. Separate physical exports from deemed exports. Ensure the evidence and realisation documents appropriate to each supply are available and mapped to the correct authorisation.
  4. Check whether an amendment or another extension already changed the timeline. The special relief sits alongside the normal FTP and Handbook procedures; it does not erase earlier changes in the licence history.

Build the closure file before the deadline

Start with a shipment-level reconciliation: shipping-bill number and date, port, invoice, product and quantity, FOB value, authorisation number quoted in the export documents, and the corresponding realisation evidence. For EPCG, reconcile the specific and average export obligations separately where applicable. For Advance Authorisation, reconcile inputs imported duty-free against the export product and permitted norms.

Then isolate exceptions instead of burying them in the total: short shipment, amendment pending, shipping bill not transmitted, wrong authorisation quoted, E-BRC mismatch, third-party export, or an export that cannot be linked cleanly to the licence. A total that appears sufficient can still fail closure if the underlying evidence does not connect.

Regional Authorities verify compliance when issuing the EODC or processing closure or regularisation. Customs was informed to permit exports against the revised timeline, but that does not remove the need for consistent records across DGFT, ICEGATE and banking data.

If the obligation will still be short

Escalate it now. The normal FTP and Handbook provisions for extension on payment of the prescribed composition fee remain separate from the automatic relief. Depending on the scheme and facts, the available route may be a regular extension, regularisation of the shortfall, payment of duty and interest, or another scheme-specific remedy. The correct choice depends on the authorisation; there is no safe one-line answer.

Operationally, do not schedule a token export merely to create movement before the deadline unless the shipment is commercially and documentarily valid. A rushed export with the wrong product mapping or authorisation reference can create a second problem without curing the first.

For the freight and customs documents that should match before filing, use our documentation checklist, and involve your DGFT adviser or Regional Authority for an authorisation-specific determination.

Questions we are getting

Does every open EPCG or Advance Authorisation get the 31 August extension?

No. The special automatic relief applies to specified authorisations whose original export-obligation or block-wise period expired between 1 March and 31 May 2026. Check the individual authorisation and its history.

Do I need to apply or pay a fee for this special extension?

DGFT stated that the extension is automatic and requires neither a separate application nor a composition fee. That does not remove the later EODC, closure or regularisation process.

What should I do if the obligation will remain short on 31 August?

Obtain scheme-specific advice immediately. Normal FTP and Handbook routes may include a paid extension or regularisation, but the correct route and financial consequence depend on the authorisation and the nature of the shortfall.

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