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Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), issued Public Notice No. 10/2024-25-DGFT on June 6, 2024. This notice introduces an amendment to Appendix 2Y of the Foreign Trade Policy (FTP) 2023. The amendment specifically includes the Department of Chemicals & Petro-chemicals (DCPC) in the list of ministries and departments whose notifications on mandatory Quality Control Orders (QCOs) are exempted by the DGFT for goods to be utilized or consumed in the manufacture of export products.

Key Points of the Public Notice:

  1. Addition of DCPC to Appendix 2Y: The DCPC has been added to the list of ministries and departments under Appendix 2Y of the FTP 2023. This list identifies the entities whose mandatory QCOs can be exempted by the DGFT for inputs used in export production. The updated list in Appendix 2Y now includes the Ministry of Steel, the Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Textiles, the Ministry of Mines, and the newly added DCPC.
  2. Regulation of Export Obligation (EO) Period: The notice also specifies that the Export Obligation (EO) period for products falling under the Ministry of Textiles and the DCPC is regulated according to paragraph 2.03(A)(i)(g) of the FTP 2023. This regulation limits the EO period for these products to 180 days from the date of clearance of import consignments with respect to QCO exemption.
  3. Enabling Provisions for Imports: The public notice outlines provisions for importing inputs subject to mandatory QCOs by Advance Authorisation holders, Export Oriented Units (EOUs), and units within Special Economic Zones (SEZs). These provisions facilitate the import of necessary inputs without the constraints imposed by QCOs, provided the inputs are used in the manufacture of export products.
  4. Immediate Implementation: The changes brought about by this notice are effective immediately, following Notification No. 71/2023 dated March 11, 2024. This swift implementation aims to streamline the process for manufacturers and exporters relying on imported inputs that fall under mandatory QCOs.

Detailed Breakdown of the Public Notice:

  • FTP 2023 Amendments: The amendments were made under the powers conferred by paragraphs 1.03 and 2.04 of the FTP 2023. These sections of the FTP empower the DGFT to make necessary amendments to facilitate trade and enhance the export potential of the country.
  • Appendix 2Y Overview: Appendix 2Y lists the ministries and departments whose QCO notifications are exempted by the DGFT for goods intended for export production. This exemption is crucial for manufacturers who need to import inputs without the delay and cost implications of mandatory QCO compliance.
  • Impact on Exporters: he inclusion of the DCPC in Appendix 2Y significantly benefits exporters dealing with chemicals and petrochemical products. It allows them to import necessary inputs more efficiently, ensuring compliance with export requirements without being hindered by QCO regulations.
  • Compliance and EO Period: The notice emphasizes compliance with the EO period, particularly for products under the Ministry of Textiles and the DCPC. Exporters must adhere to the 180-day EO period from the date of import clearance, ensuring timely export and compliance with the FTP regulations.

MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Foreign Trade)

Public Notice No. 10/2024-25-DGFT |Dated: 6th June, 2024

Subject: Enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders (QCOs) by Advance Authorisation holders, EOU and SEZ – regarding.

F. No.01/89/180/13/AM-15/PC-2[A]/E-5910.—In exercise of powers conferred under paragraph 1.03 and 2.04 of the Foreign Trade Policy (FTP), 2023, the Director General of Foreign Trade hereby makes amendment in Appendix 2Y (the list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT for goods to be utilized/consumed in manufacture of export products). The updated Appendix 2Y is reproduced herewith (changes made are indicated in bold letters):

Appendix -2Y

(Refer Para 2.03(c) of FTP)

The list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT
for goods to be utilised/consumed in manufacture of export products

Sl. No Name of Ministry / Department
1 Ministry of Steel
2 Department for Promotion of Industry and Internal Trade (DPIIT)
3 Ministry of Textiles**
4 Ministry of Mines
5 Department of Chemicals & Petro-chemicals (DCPC)**

**The EO Period for the products of Ministry of Textiles and DCPC is regulated in terms of para 2.03(A)(i)(g) of FTP, 2023

Effect of this Public Notice:

In pursuance of Notification No. 71/2023 dated March 11, 2024, Department of Chemicals & Petro-chemicals have been added in the list of Ministries/Departments under Appendix 2Y of FTP, 2023, with immediate effect.

SANTOSH KUMAR SARANGI, Director General of Foreign Trade & Ex- officio Addl. Secy.

*****

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Nanijya Bhawan, New Delhi

Dated: 12th June, 2024

CORRIGENDUM

Subject: Corrigendum to Public Notice No.10/2024-25 dated 06th June, 2024 on enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders (QCOs) by Advance holders, EOU and SEZ-regarding.

In exercise of the powers conferred under Paragraph 1.03 and 2.04 of Foreign Trade Policy, 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following correction in changes been made in Appendix 2Y of FTP, 2023, in Public No.10/2024-25 dated 06th June, 2024: (Changes made are in bold letters)

As existing in Public Notice No. 10 2024-25 dated 06.06.2024 Corrected
The EO Period for the products of Ministry The of Textiles and DCPC is regulated in terms of of Para 2.30(A)(i)(g) of FTP, 2023 EO Period for the products of Ministry Textiles and DCPC is regulated in terms of Para 2.03(A)(i)(g) of FTP, 2p23

Effect to this Public Notice: The Para number of EO Period for the products of Ministry of Textiles and DCPC stands corrected as 2.03(A)(i)(g) in Public Notice No. 10/2024-25 dated 06th June 2024.

(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex- officio Addl. Secretary to the Government of India
Email: dgft@nic.in

[Issued from File No.01/89/180/13/AM-15/PC-2[A]/E-5910]

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