India Extends Export Obligation Period Amid US Tariff Hike

The Indian government has extended the export obligation period from six to 18 months for products needing mandatory quality norms under the advance authorisation scheme. This move is significant in light of the US imposing a 50% tariff on Indian imports, impacting sectors like chemicals.

In a strategic move, the Indian government announced on Thursday that the export obligation period for imports requiring strict quality norms under the advance authorisation scheme has been extended from the current six months to 18 months.

This decision is particularly crucial as it comes in response to the United States imposing hefty 50% tariffs on Indian goods entering its market. Exporters foresee significant repercussions on the chemicals sector due to these newly imposed high duties.

The Directorate General of Foreign Trade (DGFT) noted that henceforth, all advance authorisation holders must adhere to the revised regulations, per the norms outlined in the Handbook of Procedures.

(With inputs from agencies.)