India Extends Export Obligation for QCO-Free VSF to 18 Months

In a major relief for the Indian textile sector, the government has extended the export obligation period to 18 months for imports of viscose staple fibre (VSF) exempted from the Quality Control Order (QCO). The move, aimed at facilitating smoother operations for exporters, comes after persistent appeals from industry bodies such as the Confederation of Indian Textile Industry (CITI).

The decision restores the original timeline under the Advance Authorisation scheme, which grants exporters 18 months to re-export duty-free imported raw materials. The period had earlier been curtailed to 180 days for QCO-exempted VSF imports, placing a strain on exporters struggling to meet the shortened deadline.

Now, Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorisation holders can import VSF under pre-import conditions without QCO compliance and avail the full 18-month period to fulfill their export obligations.

“We are delighted that our request for a relaxation in the export obligation period has been accepted by the authorities,” said CITI Chairman Rakesh Mehra. “The step will prove immensely beneficial for companies as they will now get more time to discharge their export obligations.”

CITI has been actively engaging with the government to address the challenges posed by the QCO framework. Mehra noted that the extension is a result of constructive dialogue and reflects the government’s responsiveness to industry concerns.

The extension is expected to enhance operational flexibility, ease raw material planning, and support competitiveness in global markets — particularly as India continues to strengthen its position in the global textile and apparel value chain.