Indian Economy News

DGFT is implementing the Advance Authorisation Scheme, which allows the duty-free import of inputs for export purposes

The Advance Authorisation Scheme, under the Foreign Trade Policy (FTP), which allows the duty-free import of inputs for export purposes, is being implemented by the Directorate General of Foreign Trade (DGFT). Based on input-output norms, Sector-Specific Norms Committees decide which inputs are eligible.

The DGFT has established a searchable, user-friendly database of Ad-hoc Norms set in the previous years in an effort to increase the efficiency of the norms fixation process. According to the Foreign Trade Policy 2023, any exporter may utilise these standards without a Norms Committee review. The database is hosted on the DGFT Website and allows users to search using export or import item descriptions, technical characteristics, or Indian Tariff Classification ITC (HS) codes.

Ad-hoc norms that comply with the requirements provided in the Handbook of Procedures (HBP) and fit the item description may be used by applicants when requesting advance authorisation on the ‘No-Norm Repeat’ basis. Subject to the conditions indicated in FTP/HBP, this option enables users to get advance authorisation without having to contact the Norms Committee again, minimising workload and facilitating quicker processing.

With this trade facilitation measure, the advance authorisation and norms fixing process is simplified, which benefits exporters by reducing turnaround times, enhancing business ease, and lowering compliance costs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.