DGFT Extends RELIEF Component II to 31 March 2027: Eligibility and ECGC Cover

The Department of Commerce extends the eligible period for RELIEF Component II until 31 March 2027 to give eligible Indian exporters more time to benefit from enhanced protection against export credit insurance risks.

The extension was made by the Directorate General of Foreign Trade (DGFT) via Notification No. 37/2026-27 published on 30 September 2026 and announced by DGFT in a Press Information Bureau (PIB) release dated 26 October 2026 at a time when West Asia is facing disruptions that are impacting the functioning of shipping lines, premiums for insurance coverages, and international trade activities.

Under RELIEF Component II, eligible exporters can enjoy increased coverage of up to 95% of eligible loss under Export Credit Guarantee Corporation of India (ECGC) coverage, subject to terms, conditions and eligibility. The extension would also protect eligible exporters from premium rates rising beyond pre-disruption levels.

Notification at a Glance

The Regulatory Framework Behind the RELIEF Intervention

The Government introduced RELIEF on 19 March 2026 through DGFT Notification No. 65/2025-26. It operates under the Export Promotion Mission and was designed to address export risks arising from geopolitical developments in the Gulf and West Asia maritime corridor.

The intervention was notified under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023.

RELIEF has three components, each addressing a different situation. Component I provides enhanced protection for eligible exporters who already held ECGC insurance. Component II encourages exporters to obtain ECGC cover for upcoming shipments. Component III provides limited reimbursement support for extraordinary freight and insurance expenses incurred by eligible MSME exporters not covered by ECGC.

ECGC acts as the implementing agency, handling verification, claims processing and disbursement under the approved framework. The latest DGFT notification specifically concerns Component II. It extends the relevant eligibility and validity timeline without automatically changing the conditions applicable to the other components.

What Has Changed Under DGFT Notification No. 37/2026-27?

DGFT has made the criteria in Paragraph 7.2 of Notification No. 65/2025-26 eligible and valid for application until 31st March 2027.

The new timeframe applies to all eligible cargo for delivery and transhipment under component RELIEF-II. This aims to increase the intervention's effectiveness for exporters in West Asia facing logistics problems.

RELIEF Extension Timeline: Original Period to March 2027

The extension provides additional time within the existing scheme framework. It is not a separate financial assistance programme or a general extension of every export-related deadline.

What Remains Unchanged Under the RELIEF Scheme?

Notification No. 37/2026-27 expressly states that the other provisions of the original RELIEF notification, as amended, remain unchanged. Exporters must therefore continue to meet the relevant ECGC policy, shipment, destination and risk-related conditions. The extension does not introduce automatic eligibility, waive existing exclusions or create a new mandatory export licence.

Who Is Eligible Under RELIEF Component II?

RELIEF Component II is intended for exporters obtaining qualifying ECGC export credit insurance for upcoming shipments to specified destinations. According to the original DGFT notification, subsequent policy clarification and ECGC guidance, eligibility includes the following categories.

• Exporters obtaining fresh standalone ECGC policies: Standalone policies with a commencement date on or after 16 March 2026 may qualify, subject to the applicable shipment and coverage conditions.
• First-time Whole Turnover Policyholders: Exporters obtaining a new ECGC Whole Turnover Policy for the first time on or after 16 March 2026 are also covered by the clarification issued in April 2026.
• MSME and non-MSME exporters: Both categories may qualify under Component II where the applicable conditions are met.

Holding an ECGC policy alone does not establish entitlement to enhanced compensation. The shipment, insured risk, loss and supporting evidence must satisfy the scheme and policy requirements.

Standalone Policies vs Whole Turnover Policies

An independent ECGC Policy provides cover within the context of its individual policy, whereas a Whole Turnover Policy provides export cover under its terms.

Policy Circular No. 01/2026-27, issued by DGFT on 15 April 2026, provided important clarity on eligibility for Component II: The Component II facility is also available to exporters obtaining a Whole Turnover Policy for the first time on or after 16 March 2026. However, this does not mean that all pre-existing or renewed Whole Turnover Policies would also qualify.

Which Countries, Shipments and Cargo Types Are Covered?

The RELIEF intervention focuses on shipments affected by disruptions in the Gulf and West Asia region. The original notification identified ten destinations. DGFT Notification No. 11/2026-27 dated 17 April 2026 expanded the list by adding Egypt and Jordan.

The twelve specified countries are United Arab Emirates, Saudi Arabia, Israel, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Yemen, Egypt and Jordan.

Eligible Cargo and Shipment Categories

The intervention points out three main types of cargo:

• Full Container Load (FCL): Cargo shipped within a full shipping container.
• Less than Container Load (LCL): Cargo sharing a container with other shipments.
• Reefer Containers: Temperature-controlled containers generally used for perishable shipments.

The framework covers qualifying shipments intended for delivery or transshipment in the specified countries. Exporters must also check the applicable shipment dates and documentation requirements. Importantly, including a country does not mean every shipment passing through it automatically qualifies.

Important Exclusions

Component II excludes energy cargoes. The Back-to-Town and Re-Import cargoes are not included in the RELIEF operation's advanced assistance. However, regular ECGC cover may apply separately if the conditions allow.

Physical cargo damage and risks ordinarily insured under marine cargo insurance are not covered by this intervention. These distinctions matter because RELIEF Component II is primarily concerned with specified export credit risks, not general compensation for every logistics-related loss.

How Does 95% ECGC Risk Coverage and Premium Protection Work?

One of RELIEF Component II's main benefits is enhanced ECGC credit-risk protection for qualifying export shipments.

Under Paragraph 7.2 of the original RELIEF notification, ECGC may provide coverage of up to 95% of an eligible loss, subject to approved terms and verification. The protection addresses losses arising from war-related risks and associated political risks in the affected countries. The Government reimburses ECGC for eligible compensation paid beyond the amount ordinarily payable under the relevant ECGC policy.

This arrangement is intended to improve insurance protection for exporters operating in a higher-risk trading environment.

Protection Against Increased ECGC Premiums

Paragraph 7.1 of the original framework stipulates that ECGC should ensure that no premium payable by eligible exporters rises above the pre-disruption level. This becomes especially important when regional instability drives insurance costs up. The exporter can get additional protection without the premium rates for eligible cargo rising as a result. However, the premium protection is not equivalent to free insurance. Normal policy charges and terms remain relevant.

Similarly, 95% risk coverage should not be confused with a 95% freight subsidy, an unconditional payment against shipment value or a guaranteed claim settlement. The actual admissible claim depends on the insured event, eligible loss, policy conditions and ECGC verification.

How Can Exporters Submit RELIEF Claims Through ECGC?

ECGC processes claims under the intervention.

Its public notice dated 23 March 2026 sets out the procedure for policyholders covered under RELIEF Components I and II.

If the exporters have any of the ECGC policies that qualify under RELIEF, then they can file the claims according to the following procedure:

• Log in to the ECGC website using the existing policyholder credentials.
• Open the Claims module of the Policy: This should be done by using the claims facility of the respective insured policy.
• File the claim and submit the records: The required information needs to be entered according to the claim form of the ECGC.
• Follow the verification process: ECGC reviews the claim under the policy terms and the RELIEF framework.

The procedure for non-ECGC-insured exporters under Component III is different and should not be confused with the process for Component II policyholders.

Documents Required for Component II Claims

ECGC's standard operating procedure directs Component II policyholders to submit the documents specified in the relevant ECGC claim form, together with other applicable supporting records.

Exporters should keep policy details, shipment records and documents supporting the reported loss readily available. The required documentation depends on the claim type. The separate document checklist published for Component III is not a universal list of mandatory Component II documents.

ECGC's published FAQs also state that exporters do not pay separate processing or administration charges to ECGC for claims processed under the RELIEF intervention. For assistance with the claims process, exporters may contact ECGC through its official portal or the relevant branch or regional office.

Impact of the RELIEF Extension on Indian Exporters

The extended timeline may help businesses that continue shipping goods through the affected West Asian trade corridors.

• Better access to export credit protection: Eligible exporters have more time for qualifying shipments to benefit from enhanced ECGC coverage.
• Greater predictability in insurance expenses: Protection against premium increases beyond pre-disruption levels may help eligible businesses assess their insurance costs when planning shipments.
• More time for shipment planning: Exporters dealing with route changes, transit uncertainty or logistics disruptions can review shipments against the revised eligibility window rather than the expired September deadline.
• Continued focus on documentation: Although the period has been extended, businesses still need to establish that their shipments and any claimed losses meet the relevant conditions.

The extension does not eliminate freight disruption or guarantee that every loss will be recovered. Its main benefit is continuing targeted insurance support for eligible export transactions.

What Should Exporters Do Next?

Export businesses planning to rely on RELIEF Component II should review their insurance arrangements and shipment records against the revised notification.

The following checks are particularly useful:

1. Confirm policy eligibility: Review whether the business holds a qualifying standalone policy or eligible first-time Whole Turnover Policy.
2. Verify shipment details: Check the destination, delivery or transshipment arrangements, cargo category and shipment date.
3. Consider exceptions: Recognize energy shipments, reimports, and other risk areas that do not qualify for additional assistance.
4. Consider the insurance coverage terms: Before using the coverage, get familiar with the risks covered, premium details, and claim criteria.
5. Keep necessary records: Keep all the relevant papers required to prove that the shipment qualifies for the benefit.
6. Look out for official guidance: Consider DGFT notifications and ECGC instructions on any changes to the scheme.

These are practical verification steps, not a new compulsory registration procedure introduced by Notification No. 37/2026-27.

How Corpseed Can Help

The RELIEF extension creates a need for exporters to distinguish between insurance-related coverage and other foreign trade compliance obligations. Corpseed helps with relevant import-export regulatory services, including Import Export Code (IEC) registration, documentation and DGFT-related regulatory requirements. Businesses establishing new export operations or reviewing their documentation can also refer to Corpseed's IEC registration guidance.

The ECGC remains the agency that handles insurance cover and processes RELIEF claims. The regulatory support offered by Corpseed is in no way related to ECGC's policy acceptance or claim settlement process. For those who need IEC registration and DGFT compliance, you can check out the import-export services offered by Corpseed.

Key Takeaways

• DGFT Notification No. 37/2026-27 extends the eligibility and validity timeline under RELIEF Component II until 31 March 2027.
• Eligible exporters may obtain enhanced ECGC protection of up to 95% of qualifying losses, subject to policy conditions and verification.
• Component II covers qualifying standalone and first-time Whole Turnover Policies meeting the relevant conditions.
• The eligible destinations include the ten originally specified countries, together with Egypt and Jordan.
• The extension does not remove existing eligibility requirements or automatically extend the separate provisions of Components I and III.