India extends export obligation for QCO-free VSF imports to 18 months
India has extended the export obligation period for imports of viscose staple fibre (VSF) exempted from the Quality Control Order (QCO) to 18 months, following consistent demands from the textile industry. The move is expected to ease the burden on exporters who import QCO-exempted VSF and are required to re-export the same. The Confederation of Indian Textile Industry (CITI) has welcomed the decision.
According to industry sources, the government has allowed Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorisation holders to import VSF without adhering to the QCO under pre-import conditions. Under the Advance Authorisation scheme, exporters are typically granted 18 months to re-export duty-free imported raw materials. While this timeline was initially applied to QCO-exempted imports as well, it was later shortened to 180 days.
India has extended the export obligation period for QCO-exempt viscose staple fibre (VSF) imports to 18 months, restoring the original timeline after industry appeals. This move benefits EOUs, SEZs and Advance Authorisation holders by easing pressure on re-export requirements. CITI welcomed the decision, citing it as a significant relief for exporters and a step towards smoother QCO implementation.
Exporters had urged the government to restore the original 18-month period. Responding to the appeal, the government has now agreed to reinstate the extended timeline.
'We are delighted that our request for a relaxation in the export obligation period has been accepted by the authorities,' CITI chairman Rakesh Mehra said. 'The step will prove immensely beneficial for companies as they will now get more time to discharge their export obligations.'
He pointed out that CITI has been working closely with the authorities on the issue of quality control orders (QCOs) to ensure their effective implementation.
Fibre2Fashion News Desk (KUL)
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