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Export Obligation Period (EOP) Extension

Missed your export deadline? Don't let your license expire. We help you extend the validity of Advance Authorisation & EPCG licenses by paying minimal composition fees.

EOP Extension Assessment

Find out your extension cost and submit request.

Why Extend EOP?

Every export license comes with a fixed Export Obligation Period (EOP). For Advance Authorisation, it is typically 18 months. For EPCG, it is 6 years.

[Image of EOP Timeline Diagram]

If you fail to complete the export obligation within this time, you are liable to pay Customs Duty + Interest (15%). However, the Foreign Trade Policy allows for an Extension of EOP upon payment of a Composition Fee. This is far cheaper than paying the duty with interest.

Scheme Rules

Extension Criteria

Advance Authorisation

Original EOP: 18 Months

  • 1st Extension (6 Months): Allowed by paying Composition Fee of 0.5% of unfulfilled EO value.
  • 2nd Extension (6 Months): Allowed by paying Composition Fee of 0.5% (Total 12 months extension possible).
  • Further extension requires approaching the Policy Relaxation Committee (PRC).

EPCG Scheme

Original EOP: 6 Years

  • Block-wise Extension: If Block 1 target (4 years) is missed, it can be regularized by paying a 2% fee.
  • Overall Extension: One extension of up to 2 years may be granted.
  • Fee: 2% of proportionate duty saved amount on unfulfilled EO.

Composition Fee Structure

The cost of extension is calculated based on the unfulfilled export value. It is critical to calculate this accurately to avoid rejection by the Regional Authority (RA).

Advance License

0.5% of the shortfall in FOB value of Export Obligation.

EPCG License

2% of the proportionate duty saved amount corresponding to unfulfilled EO.

Example Calculation

Advance Auth Shortfall: ₹ 1 Crore
Extension Fee (0.5%): ₹ 50,000
(vs Duty + Interest which could be ₹ 30 Lakhs+)

Get Precise Calculation
Filing Steps

DGFT Workflow

1

Audit

Determine total exports completed versus obligation pending.

2

Fee Payment

Calculate and pay the composition fee on the DGFT portal.

3

Application

File the amendment request online for EOP extension.

Approval

Regional Authority approves and updates license validity in DGFT.

Professional Services

EOP Management

Consultancy & Filing

Request Quote

Based on License Value

  • Shortfall Analysis
  • Fee Calculation
  • Online Filing
  • Liaison with DGFT RA
  • PRC Appeal (if needed)

Why CloudDesk for Eop-Extension?

Missing a deadline by one day can cost you years of profit. CloudDesk manages the 'Clock' so you don't have to.

1. Strategic "Reason-for-Delay" Drafting

The DGFT doesn't grant extensions just because you asked. You need a Compelling Legal Justification (e.g., force majeure, policy changes, or genuine hardship).CloudDesk’s legal team drafts the representation to the Regional Authority (RA) or the Policy Relaxation Committee (PRC) to ensure your case is viewed favorably.

2. Composition Fee Optimization

Extensions aren't free; they come with a Composition Fee (usually a % of the duty saved). CloudDesk performs a Cost-Benefit Analysis. We calculate if it’s cheaper to pay the fee for an extension or to "Regularize"(pay duty + interest) based on your current order book.

3. PRC (Policy Relaxation Committee) Representation

When your extension request falls outside the standard rules of the Hand Book of Procedures (HBP), it goes to the PRC at DGFT Headquarters, New Delhi.CloudDesk manages the high-level representation, providing the necessary data and "Public Interest" arguments to secure an out-of-turn extension.

4. Automatic "Deadline Sentinel"

Exporters often realize their EOP has expired after it’s too late. CloudDesk’s Compliance Clock starts a countdown 6 months before your EOP expires.If your exports are below 70% of the target, we automatically initiate the extension process to avoid "Ex-post-facto" penalties.

Frequently Asked Questions

What is the standard Export Obligation Period (EOP)?

"• Advance Authorisation: Generally 18 months from the date of license issue. • EPCG: Generally 6 years from the date of license issue."

Can I get an extension if my EOP has already expired?

Yes, but it's expensive. This is called "Ex-post-facto" extension. You will have to pay a much higher composition fee and may face a "Show Cause Notice" from the DGFT. CloudDesk specializes in resolving these "Expired License" crises.

How many extensions can I get?

Under the 2023-2026 Policy, you can typically get two extensions of 6 months each for Advance Authorisation, and two extensions of 1 year each for EPCG, subject to payment of composition fees. Anything beyond this requires PRC approval.

How is the "Composition Fee" calculated?

In 2026, the fee is usually a tiered percentage of the Duty Saved (e.g., 0.5% for the first extension, 1% for the second). CloudDesk ensures you are charged correctly—DGFT officers often over-calculate these fees manually.

Is interest also charged for the extension period?

No. If you get a valid EOP extension, you do not pay interest for that period. This is why getting an extension is always better than defaulting.

What documents are required for an EOP extension?

(1) A formal application via the DGFT portal, (2) A self-declaration of exports made so far, (3) Evidence of "Genuine Hardship" (like a fire report, strike notice, or bank letter), and (4) Proof of payment of the Composition Fee.

What happens to my Bank Guarantee (BG) during the extension?

You must extend the validity of your Bank Guarantee at Customs to match the new EOP. CloudDesk coordinates with your bank and the Customs department to ensure the BG remains active, preventing a "BG Forfeiture" action.

Can I get an extension for "Deemed Exports"?

Yes. If you are supplying to SEZs or EOU units in India (Deemed Exports), the same EOP rules and extension procedures apply as they do for physical exports.