DGFT’s Advance Authorisation Scheme

July 18, 2023

In a bid to enhance trade facilitation and streamline processes for exporters, the Directorate General of Foreign Trade (DGFT) has introduced new measures under the advance authorization scheme. This scheme aims to enable duty-free import of inputs for export purposes, ultimately boosting India’s exports. Alongside this initiative, the DGFT has developed a user-friendly and searchable database of ad-hoc norms fixed in previous years, hosted on their official website.

Streamlining Eligibility with Sector-Specific Norms

Under the advance authorization scheme, the eligibility of inputs is determined by sector-specific norms committees. These committees utilize input-output norms as the basis for evaluating the eligibility of inputs. By aligning with industry-specific requirements, the scheme ensures that exporters have access to the necessary inputs without unnecessary burdens or delays.

A User-Friendly Norms Database

The DGFT has taken a step further to simplify the norms fixation process by creating a comprehensive database. This database allows exporters and the public to search for ad-hoc norms based on three key criteria:

Export or import item descriptions

Technical characteristics

Indian tariff classification codes

By providing easy access to information, exporters can swiftly determine the applicable norms without approaching the norms committee.

Benefits of Trade Facilitation Measures

These trade facilitation measures introduced by DGFT yield several significant benefits:

Exporters experience shorter turnaround times, as they can swiftly access the norms database and apply for the advance authorization scheme without approaching the norms committee again.
This reduction in bureaucratic hurdles leads to improved ease of doing business and enhances the overall efficiency of export processes.
By simplifying the norms fixation process, the measures reduce the compliance burden on exporters, enabling them to focus more on their core business activities.

India’s Exports in June: Decline and Factors

Unfortunately, India witnessed a decline of 22% in its exports during June, attributed to the global demand slowdown, particularly in western markets like the US and Europe. This decline can be partially explained by the prevailing economic conditions and fluctuations in international trade dynamics.

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