India eases process for duty-free import of inputs for export purpose

18 Jul '23

2 min read

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Insights

Indian government has optimised the Advance Authorisation Scheme, simplifying duty-free import for export inputs.
The DGFT has created a searchable database of Ad-hoc Norms for exporters to use without Norms Committee review.
If the ad-hoc norm matches the item's specifics, exporters can apply for an Advance Authorisation under the 'No-Norm Repeat' basis.

The Indian government has streamlined the process for duty-free import of export inputs under the Advance Authorisation Scheme. The Directorate General of Foreign Trade (DGFT) which comes under the Ministry of Commerece and Industry, implemented the scheme. The eligibility of these inputs is determined by Sector-specific Norms Committees based on input-output norms.

The ministry of commerce and industry stated, “To enhance efficiency in the norms fixation process, the DGFT has established a user-friendly and searchable database of Ad-hoc Norms set in previous years. Any exporter can use these norms without requiring a review from the Norms Committee, as specified in the Foreign Trade Policy 2023."

The database is accessible on the DGFT website, allowing users to search by Export or Import Item Description, Technical Characteristics, or Indian Tariff Classification ITC (HS) codes.

According to a government release, if an ad-hoc norm matches the item description, specified wastages, and aligns with the provisions outlined in the Handbook of Procedures (HBP), applicants can opt to apply for an Advance Authorisation under the ‘No-Norm Repeat’ basis. This feature enables users to obtain an advance authorisation without revisiting the Norms Committee, thereby reducing the workload and expediting processing, all while adhering to the provisions detailed in the foreign trade policy and the handbook of procedures.

This trade facilitation measure simplifies the advance authorisation and norms fixation process. As a result, exporters will experience shorter turnaround times, increased ease of doing business, and a reduced compliance burden.

Fibre2Fashion News Desk (KUL)

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