India has extended the export obligation period for imports of viscose staple fiber (VSF) exempted from the Quality Control Order (QCO). The new period is now 18 months, a move that comes after persistent demands from the country's textile industry. This decision is expected to significantly ease the burden on exporters who import QCO-exempted VSF and are required to re-export it as finished goods. The Confederation of Indian Textile Industry (CITI) has publicly welcomed the government's announcement.

According to industry sources, the government has permitted Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorization holders to import VSF without needing to adhere to the QCO, provided they meet specific pre-import conditions. Under the standard Advance Authorization scheme, exporters are typically granted an 18-month window to re-export raw materials imported duty-free. While this 18-month timeline was initially applied to QCO-exempted VSF imports, it was later shortened to just 180 days.

Exporters had consistently appealed to the government to reinstate the original 18-month period, citing operational challenges. Responding to these appeals, the government has now agreed to restore the extended timeline, providing much-needed flexibility to the textile sector.