Export Obligation Period and its Extension 4.22

The period of fulfillment of export obligation under an Advance Licence shall commence from the date of issuance of licence. The export obligation shall be fulfilled within a period of 24 months except in the case of supplies to the projects/turnkey projects in India/abroad under deemed exports category where the export obligation must be fulfilled during the contracted duration of execution of the project/ turnkey project. In case of Spices ( covered by chapter 9 of the ITC (HS) Classifications of Export & Import Items, 2004-09), the export obligation shall be fulfilled within a period of 90 days from the date of receipt of the first import consignment i.e. the date on which the first import consignment is cleared by the customs authorities against the licence.

(Above sentence has been added vide PN. NO. 84/2005, DT. 23/01/2006)

However, in case of Advance Licences for drugs, which have been issued against a specific export order and with pre-import condition the period of fulfillment of export obligation shall commence from the date of import of the first consignment and shall be fulfilled within a period of 6 months. Similarly in the case of advance licence for tea, the period of fulfillment of export obligation shall commence from the date of import of first consignment and should be fulfilled within a period of six months.