The Directorate General of Foreign Trade (DGFT) plays a crucial role in promoting international trade by implementing various schemes and policies. One such initiative is the Advance Authorisation Scheme, which enables duty-free import of inputs for export purposes. In a recent press release dated 17 July 2023, the DGFT announced significant enhancements to the Advance Authorisation and Norms Fixation Workflow, aiming to streamline and expedite the process for exporters.
Understanding the Advance Authorisation Scheme
Under the Foreign Trade Policy, the Advance Authorisation Scheme allows importers to bring in inputs without having to pay any import duties. These inputs are specifically intended for use in the production of goods meant for exportation. The eligibility of these imported inputs is determined by Sector-specific Norms Committees, who establish norms based on input-output ratios.
Simplifying Norms Fixation Process
To enhance the efficiency of the norms fixation process, the DGFT has developed a user-friendly and searchable database. This comprehensive database contains Ad-hoc Norms established in previous years. Exporters can utilize these norms without requiring a Norms Committee review, as long as they adhere to the provisions outlined in the Foreign Trade Policy 2023. The database is conveniently hosted on the DGFT Website (https://dgft.gov.in/CP/) and enables users to search using Export or Import Item Description, Technical Characteristics or Indian Tariff Classification ITC (HS) codes.
Accessing the Searchable Ad-hoc Norms Database
Exporters and the general public can access the database by visiting the DGFT Website and navigating to the “Services” section. From there, select “Advance Authorisation/DFIA” and proceed to the “Ad-hoc norms” option. By matching the item description, specified wastages and complying with the provisions outlined in the Handbook of Procedures (HBP), applicants can choose to apply for an Advance Authorisation under the “No-Norm Repeat” basis. This streamlined process eliminates the need to approach the Norms Committee again, resulting in reduced workload and faster processing times, in accordance with the provisions stated in FTP/HBP.
Advantages of the Simplified Process
The recent enhancements to the DGFT’s Advance Authorisation Scheme and Norms Fixation Workflow bring about several benefits for exporters, easing their path towards international trade success:
i) Shorter Turnaround Times: By eliminating the need for Norms Committee reviews for certain cases, the process becomes more efficient, reducing the time it takes for exporters to obtain advance authorisations.
ii) Improved Ease of Doing Business: The user-friendly and searchable database allows exporters to access Ad-hoc Norms easily. This simplifies the norms fixation process, making it more convenient and hassle-free for exporters.
iii) Reduced Compliance Burden: The simplified process alleviates the compliance burden for exporters. By utilizing the Ad-hoc Norms database and the “No-Norm Repeat” option, exporters can obtain advance authorisations without going through repetitive procedures, leading to a smoother experience.
The DGFT’s Advance Authorisation Scheme plays a vital role in facilitating international trade by enabling duty-free import of inputs for export purposes. With the recent enhancements in the Advance Authorisation and Norms Fixation Workflow, the DGFT has simplified and expedited the process, benefiting exporters in multiple ways. By utilizing the user-friendly norms database and the “No-Norm Repeat” option, exporters can achieve shorter turnaround times, improved ease of doing business and a reduced compliance burden. These measures are essential in enhancing export opportunities and promoting a thriving global trade ecosystem.