inistry of Commerce & Industry’s Directorate General of Foreign Trade (DGFT) implements the Advance Authorisation Scheme, enabling duty-free import of inputs for export purposes. Recent enhancements in the Advance Authorisation and Norms Fixation Workflow have streamlined the process, benefiting exporters.
Analysis: Under the Advance Authorisation Scheme, exporters can import inputs without paying duties, promoting export-oriented production. The DGFT has introduced a user-friendly database of Ad-hoc Norms, allowing exporters to use predetermined norms for faster processing. This database, hosted on the DGFT website, simplifies the norms fixation process and reduces the reliance on Norms Committees. Exporters can access the database, search for matching norms, and apply for Advance Authorisation under the “No-Norm Repeat” basis, saving time and effort.
The implementation of this trade facilitation measure improves the ease of doing business for exporters. It reduces turnaround times, enhances efficiency, and minimizes the compliance burden. Exporters can benefit from expedited processing and focus on their core activities, contributing to increased trade and economic growth.
Conclusion: The DGFT’s Advance Authorisation Scheme enables duty-free imports of inputs for export purposes, promoting export-oriented production. The recent enhancements in the Advance Authorisation and Norms Fixation Workflow, including the introduction of the Ad-hoc Norms database, simplify the process for exporters. This trade facilitation measure enhances ease of doing business, reduces compliance burden, and supports the growth of the export sector. Exporters can take advantage of the streamlined process to boost their competitiveness in the global market.
RELEVANT PRESS RELEASE IS AS FOLLOWS:-
Ministry of Commerce & Industry
DGFT implements the Advance Authorisation Scheme, allows duty-free import of inputs for export purposes
Significant enhancements in Advance Authorisation and Norms Fixation Workflow
Directorate General of Foreign Trade (DGFT) implements the Advance Authorisation Scheme under the Foreign Trade Policy, which allows duty-free import of inputs for export purposes. The eligibility of inputs is determined by Sector-specific Norms Committees based on input-output norms.
To make the norms fixation process more efficient, the DGFT has created a user-friendly and searchable database of Ad-hoc Norms fixed in the previous years. These norms can be used by any exporter without requiring a Norms Committee review as outlined in the Foreign Trade Policy 2023. The database is hosted on the DGFT Website (https://dgft.gov.in) and allows users to search using Export or Import Item Description, Technical Characteristics, or Indian Tariff Classification ITC (HS) codes.
To access the database, the exporter or public may visit the DGFT Website under Services –> Advance Authorisation/DFIA –> Ad-hoc norms. If an ad-hoc norm matches the item description, specified wastages, and complies with the provisions outlined in the Handbook of Procedures (HBP), applicants may choose to apply for an Advance Authorisation under the “No-Norm Repeat” basis. This option allows users to obtain an advance authorisation without approaching the Norms Committee again, reducing the workload and enabling faster processing, subject to provisions as outlined in FTP/HBP.
This trade facilitation measure simplifies the advance authorisation and norms fixation process, resulting in shorter turnaround times for exporters, improved ease of doing business, and reduced compliance burden.